Citi's Radke says AI is splitting software into winners and losers, Microsoft revenue growth to top 20%

Citi's Tyler Radke says AI is reshaping the software sector, lifting growth at Microsoft, Palantir and Snowflake while pressuring Adobe and smaller vendors as IT budgets shift. Microsoft's revenue grew 18% in the quarter ended June 30, with Office priced under $100 monthly and bundled AI and security features. Radke notes CIOs rank Microsoft's in-house AI models near leading labs. Salesforce agreed to buy Braze for $47.50 per share, and Radke warns higher financing costs could widen the gap between winners and losers.