How Nvidia's $10 Ripple Effect Could Lift Adobe, Salesforce, ServiceNow

Benzinga
2025.06.05 12:30
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Nvidia's chip boom is creating a ripple effect across the tech ecosystem, with an estimated $8-$10 multiplier for every dollar spent on Nvidia products, according to Wedbush analyst Dan Ives. This impact is benefiting software giants like Adobe, Salesforce, and ServiceNow as enterprise clients shift focus to AI deployment. While Nvidia's stock has cooled recently, companies like Adobe and ServiceNow are seeing gains. Wedbush anticipates 2025 as a pivotal year for enterprise AI adoption, highlighting the importance of identifying software players that will benefit from the projected $2 trillion AI spending wave.

Nvidia Corp NVDA may be the undeniable epicenter of the AI Revolution, but the aftershocks of its chip-powered boom are being felt far beyond semiconductors.

According to Wedbush analyst Dan Ives, “for every $1 spent on Nvidia, there is an $8-$10 multiplier across the rest of the tech ecosystem.” Looking at the value chain, this ripple effect is now seemingly reaching software giants like Adobe Inc ADBE, Salesforce Inc CRM and ServiceNow Inc NOW.

Read Also: Nvidia Stock Has ‘Significant Upside’ As AI ‘Godfather’ Jensen Huang Delivers Another ‘Robust Quarter’

From Silicon To Software: The AI Domino Effect

Nvidia has surged nearly 16% over the past year, though the stock has cooled with a 24.7% drop in the past month. Still, the foundational role its chips play in AI infrastructure—especially for hyperscalers like Amazon.com Inc's AMZN AWS and Alphabet Inc's GOOG GOOGL GCP—is creating second-order beneficiaries.

Companies like Adobe, Salesforce and ServiceNow sit squarely in the next wave of value creation, as enterprise clients now shift focus from AI infrastructure buildouts to actual deployment across vertical-specific use cases.

  • Adobe, with its suite of creative and document tools, has jumped 8.6% over the past month after lagging most of the year.
  • Salesforce remains down 20.4% YTD, but its AI-powered CRM offerings are increasingly viewed as critical in enterprise automation.
  • ServiceNow, meanwhile, is up over 3.5% this month and nearly 44% over the past year, as its AI-infused workflow solutions continue gaining traction.

Enterprise Adoption Accelerates In 2025

Wedbush believes 2025 marks the true inflection point in enterprise AI adoption. Ives notes that "high priority AI use cases have been identified and now being driven/accelerated across a myriad of verticals," positioning software vendors to capitalize as companies move from experimentation to scale.

While Nvidia may be the "Godfather of AI," the broader investment case now hinges on identifying which software players will ride this $2 trillion AI spending wave. For investors, that may mean looking beyond the chip king to the quiet beneficiaries—those turning silicon into scaled solutions.

  • Wedbush Launches AI Revolution ETF Backed By Dan Ives’ Proprietary Tech Picks

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