Wed. Dec 25th, 2024

Loking to 2024, Piper Sandler expects it to be an inflection year for AI spending across broader infrastructure and CCaaS AI software. While the IT spending environment may remain cautious through the first half of 2024, budgets could open up in the second half of the year, the firm says. Security appears poised for a strong year, while interest rates will impact both valuations and debt refinances. Piper sees the best-positioned names as Arista Networks, Fastly, Akamai Technologies, Five9, Nutanix, and Nice. The firm remains selective towards names with more resiliency underneath, catalysts, and favorable competitive landscapes, with its top-picks being Nutanix, Akamai, Nice, and Five9.