Rishi Jaluria, software managing director at RBC Capital Markets, has Microsoft as his top pick in software. The software pioneer company recently pledged $7.5 billions in AI investment in Canada. MongoDB and Hubspot are his other two Hot Picks today.

Artificial intelligence is becoming a defining force in the software sector, with investors increasingly focused on which platforms can translate AI adoption into durable growth and profitability. From cloud infrastructure to databases and customer-facing applications, scale and execution are emerging as key differentiators.

BNN Bloomberg spoke with Rishi Jaluria, software managing director at RBC Capital Markets, about how AI is reshaping competitive dynamics across software, and why select companies are positioned to benefit as spending accelerates.

Key TakeawaysArtificial intelligence is increasingly viewed as a multi-year growth driver, with leading software platforms positioned to deliver meaningful earnings leverage over time.Large, integrated ecosystems are gaining an edge as customers prioritize AI solutions that span cloud infrastructure, data and applications.The rise of AI applications is accelerating demand for databases designed to handle unstructured and non-relational data.Consistent execution and profitability are becoming more important as competition intensifies across cloud, database and application software.AI-driven innovation in CRM and marketing automation could reshape competitive dynamics as vendors push beyond their traditional customer bases.Rishi Jaluria, software managing director at RBC Capital Markets Rishi Jaluria, software managing director at RBC Capital Markets

Read the full transcript below:

ROGER: Okay, time for Hot Picks. Our next guest covers software and has one of the pioneers in the sector as his top pick. Let’s get more from Rishi Jaluria, software managing director at RBC Capital Markets. Rishi, thanks, as always, for joining us.

RISHI: Thanks so much for having me.

ROGER: All right, you’re going old school with Microsoft. Can we call it old school now?

RISHI: Microsoft is one of those really interesting companies that has proven it can reinvent itself time and time again. It was obviously a pioneer in software and successfully navigated the cloud transition, whether you look at the momentum with Office 365, Azure or the broader cloud suite.

Now it’s doing that again with AI. Microsoft was very early, making its first investment in OpenAI back in 2019, and it’s now taking an AI-first approach by infusing AI throughout the stack.

What impresses me most is the number of ways Microsoft can benefit from AI. It’s not just about raw compute capacity for model training. It’s at the data layer with products like Fabric and Cosmos DB, at the developer layer with GitHub Copilot, and at the application layer with tools like Office Copilot and security Copilot. Even areas like LinkedIn and gaming, which investors may overlook today, could become meaningful beneficiaries of AI over time.

ROGER: So Microsoft, as big as it is, still seems able to adapt and lead?

RISHI: I think that’s right, and a lot of it comes down to the leadership of Satya Nadella, who has been very forward-thinking throughout his tenure as Microsoft’s CEO.

ROGER: What has he done that has impressed you the most?

RISHI: The biggest thing I’ve seen is his focus on doubling down on innovation. The larger a company gets, the harder it is to innovate, but he has created a culture of innovation and a more open ecosystem — a kinder, gentler Microsoft, so to speak, compared with what we saw under the Steve Ballmer era.

Microsoft is now willing to work with and integrate directly with competitors. Anything that drives customer success also drives innovation, and ultimately company success. That culture has allowed Microsoft to remain so successful.

ROGER: Okay, next up is MongoDB.

RISHI: MongoDB may not be a household name, but it’s a next-generation database vendor. It competes with companies like Oracle, which are focused on structured data — data that fits neatly into rows and columns.

MongoDB focuses on unstructured data, and that’s a fundamentally different problem. What excites me most is the opportunity around the creation of new AI applications, particularly those leveraging unstructured data. MongoDB is well positioned with the right technology and can become a developer platform of choice for these applications.

We’re already seeing AI-native companies like Cursor and Relevance AI using MongoDB. As those companies scale and become more material, that creates a meaningful tailwind for MongoDB.

ROGER: What are some of the technologies they’re incorporating that you like?

RISHI: There are a couple of key areas. First is the ability to work with unstructured data, which is very different from working with structured data where you might use Oracle or open-source PostgreSQL.

Second is the integration of adjacent technologies. MongoDB is bringing search and vector database capabilities into MongoDB Atlas. It’s also leveraging AI to make it easier to move relational workloads onto a non-relational database.

By integrating these capabilities into its core platform, MongoDB can capture a greater share of workloads and wallet. As AI applications continue to be developed and scaled, that positioning becomes a real tailwind for the business.

ROGER: Okay, and last up is HubSpot. What do you like there?

RISHI: HubSpot is a really compelling company. I often think of it as the anti-Salesforce. It operates in similar areas — sales, service, marketing, commerce and operations — but HubSpot was built organically from the ground up.

All of its modules are built on a single platform, rather than stitched together through acquisitions, which is what we’ve seen from Salesforce. HubSpot is investing heavily in innovation and customer success.

I see two major ways HubSpot can benefit from AI. First, it has one of the most forward-leaning AI roadmaps in front-office application software. That’s driven by co-founder and CTO Dharmesh Shah, who is among the most hands-on public-company executives when it comes to AI.

Second, HubSpot can use AI to accelerate product development and narrow the gap with Salesforce. Salesforce has traditionally dominated large enterprises, while HubSpot has focused on the mid-market. Over time, that could change. If HubSpot builds the governance, security and customization capabilities enterprises need, I wouldn’t be surprised to see it win Global 2000 deals against Salesforce within the next five years.

ROGER: We’ll have to leave it there. Rishi, thanks very much for joining us, and all the best in the new year.

RISHI: Thank you so much.

—

This BNN Bloomberg summary and transcript of the Dec. 30, 2025 interview with RishiJaluria are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.