Infrastructure Software is 'Place to Be' Amid AI Trade, Says Fatima Boolani
TL;DR
Fatima Boolani, Co-Head of US Software Equity Research at Citi, discussed the tech selloff on Bloomberg Technology through the lens of the ongoing AI trade. Her core argument: infrastructure software is the place to be because AI spending depends on data, cloud, security and operational layers that make deployment possible. This is analyst commentary, not a product announcement. The emphasis moves attention from flashy AI apps to the software stack underneath them.
Nauti's Take
This is a plausible trade, but not automatically a cheap one. Infrastructure software is the picks-and-shovels story of the AI era: less flashy than agents and chatbots, but closer to real enterprise IT budgets.
The catch is that many of these companies already carry an AI premium. Investors should look for proof that AI spending is turning into incremental software revenue, not just better conference-call language.
Briefingshow
The AI trade is often framed around chips, models and high-profile apps. Boolani’s point is more practical: companies need infrastructure, governance, data pipelines and security before AI can work at scale. That could make infrastructure software a more durable beneficiary than many front-end AI products.
Sources