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Over the next decade, there are likely to be lucrative opportunities in every sector of the stock market. From Healthcare to Industrials, there will be plenty of opportunities to make money. But there’s one specific area of the market I’m really bullish on when I think about the next 10 years. I think this particular area may end up being very lucrative.
Capitalising on the ‘Fourth Industrial Revolution’
Today, the world is experiencing an incredible technological revolution (sometimes called the ‘Fourth Industrial Revolution’). Driven by game-changing technologies such as cloud computing, robotics, and artificial intelligence (AI), the world is rapidly becoming more digital.
This trend is unlikely to end any time soon – the genie is well and truly out of the bottle now. To my mind, it’s exciting and a little scary at the same time.
Now, if there’s one sector that’s benefitting from this trend it’s software. Whether it’s business productivity, agentic AI, or cybersecurity software, it’s at the heart of this digital revolution and companies involved are growing rapidly.
So, I think this area of the market is going to throw up some amazing opportunities over the next decade as the world becomes more digital. I’m so bullish that I’m building my investment portfolio around the sector.
My software exposure
Indeed, today I have investments in nearly 20 different companies that are active in the software space. I’ve put them in the table below.
| Stock | Type of software | 1-year performance (%) |
| Microsoft | Business productivity, cloud computing | 7% |
| Amazon | Cloud computing | 12% |
| Alphabet | Cloud computing | -5% |
| Nvidia | Semiconductor | 24% |
| London Stock Exchange Group | Financial data | 15% |
| Sage | Accounting | 13% |
| Nasdaq | RegTech | 49% |
| Salesforce | CRM, agentic AI | 6% |
| Snowflake (NYSE: SNOW) | Data analytics | 56% |
| CrowdStrike | Cybersecurity | 32% |
| Uber | Mobility | 31% |
| Shopify | E-commerce | 73% |
| Gamma Communications | Communications | -22% |
| Cerillion | Back office | -6% |
| Workiva | Business productivity | -3% |
| Toast | Restaurant payments | 72% |
| Palo Alto Networks | Cybersecurity | 20% |
| Fortinet | Cybersecurity | 76% |
| Zscaler | Cybersecurity | 56% |
The majority of these stocks are US-listed. But there are few UK-listed companies in the mix including London Stock Exchange Group, Sage, Cerillion, and Gamma Communications.
Overall, they give me broad exposure to the Software sector. They also give me plenty of exposure to the digital revolution.
A top idea for the next 10 years
One stock on that list I’m really excited about is Snowflake. It offers data storage and analytics solutions via a software-as-a-service (SaaS) model.
This company is literally at the heart of the tech revolution. Because it helps companies sort and leverage their data.
For example, if a business wants to use AI to enhance productivity, it might turn to Snowflake to get its data structured properly (the first step when it comes to using AI). It can then use Snowflake’s range of AI solutions to gain powerful insights from the data.
Given its valuable data-based offering, Snowflake is growing quickly. Last quarter, for example, product revenue was $997m, up 26% year on year.
Net revenue retention rate was 124%. That means that existing customers are spending more.
Now from an investment perspective, there are risks of course. A downturn in spending from customers and competition from the likes of Amazon and Databricks are two worth highlighting.
The valuation is also lofty. So, investors need to be prepared for volatility.
I see a lot of potential here however, given the direction the world is heading in. In my view, the stock is worth considering on pullbacks.
