Software Gains Momentum as Chips Slump in Wall Street’s New Rotation
Investors are embracing a ‘long software, short chips’ rotation: enterprise SaaS leaders rally in premarket trading even as AI hardware names slide, reflecting expectations that hyperscaler AI infrastructure growth may plateau while enterprise AI adoption fuels recurring software revenue. CrowdStrike leads software gains, while chipmakers like Nvidia, AMD, and Broadcom retreat on worries of overcapacity and slower model-training spend. The trend could persist into Q3 earnings season, with MSFT, GOOG, AMZN, and META guidance and Fed policy potentially shaping the rotation.
