Fundstrat's Tom Lee has shifted his focus from the S&P 500's near-term target of 7,300 to a new set of AI winners in the software sector. As the index hovers around 7,230, Lee identifies three software stocks he believes are the "picks and shovels" for the next AI wave, according to a recent video on the Millionaires Investment Secrets channel.
Lee's picks are Oracle (ORCL), Adobe (ADBE), and Zscaler (ZS). These companies, he argues, are poised to benefit from the infrastructure and security demands of AI adoption, much like Nvidia and Micron did in the hardware phase. "Smart money" buyers are accumulating these names ahead of a projected boom in 2026, Lee says.
"While the rest of the world is fixated on the index, Lee has shifted his gaze to a new set of AI kings within the software sector," the video summary states.
Investors who missed the run in semiconductor stocks may find opportunities in these three names as AI workloads drive demand for cloud databases, creative software, and cybersecurity.