Rishi Jaluria, managing director on software at RBC Capital Markets, joins BNN Bloomberg to share his Hot Picks in software.

Software stocks are facing renewed volatility as rapid advances in artificial intelligence reshape expectations for growth, pricing power and long-term competitiveness.

BNN Bloomberg spoke with Rishi Jaluria, managing director of software at RBC Capital Markets, about how companies leveraging AI-driven innovation may outperform while others risk falling behind.

Key TakeawaysAI is accelerating a divide in the software sector, with innovative companies emerging as long-term winners. Demand for handling unstructured data is expected to grow as AI applications expand, benefiting certain platforms. Mission-critical software with embedded workflows may remain resilient despite fears of AI-driven disruption. Companies integrating AI into core products and services could unlock new revenue streams and expand total addressable markets. Volatility may persist, but improving growth trends could challenge the bearish outlook on AI’s impact. Rishi Jaluria, managing director on software at RBC Capital Markets Rishi Jaluria, managing director on software at RBC Capital Markets

Read the full transcript below:

LINDSAY: Welcome back. It’s time now for Hot Picks, and today we’re zeroing in on the software sector. Our next guest has MongoDB as his top pick, an open-source database management system. For more, we’re joined by Rishi Jaluria, managing director of software at RBC Capital Markets. It’s great to have you join us. Thanks so much.

RISHI: Thanks so much for having me.

LINDSAY: So let’s get right into it with your first pick. As we mentioned off the top, MongoDB — what is it that you like about this software company?

RISHI: Yeah, absolutely. Look, I think MongoDB is a really interesting one, especially as we think about navigating this new AI world that we’re entering. MongoDB is open source, but under a different licensing methodology. More importantly, it’s really built for unstructured data.

If we think about what AI creates, a lot of it is unstructured data — stuff that doesn’t neatly fit into rows and columns. We really think MongoDB is well positioned to benefit from the development of these new AI applications, especially those leveraging unstructured data. It can be that developer platform of choice, and I think that’s why you’re seeing a lot of AI-native companies moving toward MongoDB. Anthropic uses them. Cursor uses them. Relevance AI — there are a number of others using MongoDB today, and we think that footprint is going to continue to grow.

LINDSAY: Your next one is Intuit. What is it that you like about the software company?

RISHI: Yeah, Intuit is a really controversial one right now with AI, and I think it’s squarely in the crosshairs. On the core TurboTax and QuickBooks franchises, there are concerns about whether people can replicate or “vibe code” their own tax software.

But I would say this: the stakes are very high. If you do something wrong with your taxes, you could be audited by the IRS or an equivalent authority. There’s a lot of workflow that’s important here. Even with the idea that AI could help guide users through the process, that undersells the major opportunity for QuickBooks and TurboTax.

In the near term, it’s about integrating AI with the data, domain expertise and workflows Intuit already has to make the experience more seamless. That expands total addressable market. In the longer term — say three to five years — there’s potential for AI agents to handle simple tax filings. That’s monetizable and expands the market, especially given how large assisted tax services are today.

On the QuickBooks side, this is mission-critical software for small businesses. It’s difficult to replicate, and there’s a significant AI opportunity, particularly in services. If a small business is paying an external accountant today, could Intuit capture that over time using AI? I think the answer is yes.

LINDSAY: It seems as though these three companies all have something in common — ramping up development of AI assistants and agents. That seems to be the same story for HubSpot, which is your last Hot Pick.

RISHI: Yeah, I think that’s a great observation. The common thread across these names is innovation. We can talk about data or enterprise versus SMB, but innovation is the most important moat in software as we navigate this AI paradigm shift.

With HubSpot, it’s a CRM company covering marketing, sales, commerce, operations and service. But unlike others, HubSpot was built entirely organically. All its hubs are on the same platform, which means a single data record and a unified user experience.

Under CTO and co-founder Dharmesh Shah, the company has been very AI-forward. He’s extremely hands-on with AI compared with other public company executives in this market cap range. That gives confidence in HubSpot’s ability to integrate AI across the sales and marketing experience.

Even if AI leads to headcount reductions, HubSpot can build innovation on top of AI and monetize it through mixed or consumption-based models, which could ultimately expand revenue and potentially accelerate growth.

LINDSAY: It’s interesting what we’ve been seeing in the software sector this year — that sharp selloff earlier on, and now some companies are rebounding. Do you agree that some companies will benefit from AI, while others risk becoming redundant if they don’t innovate?

RISHI: I think that’s exactly right. The consensus is that the selloff was probably too sharp, but we’re seeing a bit of a K-shaped recovery.

We’ll likely continue to see volatility as companies like Anthropic, OpenAI and Google make new announcements. But ultimately, it’s the innovative companies — the true AI beneficiaries — that could potentially double or triple over the next several years. Others may only see more modest rebounds of 20 to 30 per cent.

It really comes down to innovation and customer success in this new paradigm, especially with significant venture capital flowing into AI-native companies.

LINDSAY: Do you think we could see more sharp selloffs throughout the year as new innovations emerge?

RISHI: I think yes and no. On one hand, some of the most extreme concerns — around job losses and disruption — may already be priced in.

But as we saw with recent AI announcements, including from Anthropic, those can still trigger selloffs. There are multiple factors at play. That said, many software companies are trading at relatively low multiples, even on GAAP earnings, so sustained sharp declines may be limited.

At the same time, if companies begin to show accelerating growth later in the year, it becomes harder to justify the bearish AI narrative. I hesitate to call a bottom, but from a narrative perspective, it does feel like the worst may be behind us.

LINDSAY: We’ll leave it there. Rishi Jaluria, managing director of software at RBC Capital Markets. Appreciate your time. Thank you.

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This BNN Bloomberg summary and transcript of the March 26, 2026 interview with Rishi Jaluria 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.