All articles tagged with #software stocks
Nvidia’s Computex keynote introduced the RTX Spark superchip designed to run agentic AI locally on Windows laptops, a development that sparked a rally in software names and reinforced the AI growth story, with Microsoft outlining RTX Spark-powered Windows devices and OEMs rushing to adopt the tech.
The software stock rally continues, with the iShares Expanded Tech-Software ETF (IGV) up about 35% from April lows after Friday’s gains led by ServiceNow and Workday. Options activity is extremely bullish: IGV calls outrun puts by roughly 4-to-1, with more than 50,000 IGV calls traded and even higher volumes in individual software names, signaling strong upside bets despite some hedging. Traders compare IGV’s strength to semiconductor dispersion and expect mean reversion to persist, noting notable options contracts like the June 18 105 strike and December 90 strike as part of outsized bets.
Beaten-down software stocks staged a rally as AI compute demand lifts related names, with the IGV ETF up and gains in Workday, ServiceNow, AppLovin, CrowdStrike, Atlassian, Palantir and Circle; semiconductors lagged earlier but data-center and AI infrastructure plays rise on the compute boom, Intel climbs on partnerships and broader AI demand, and Goldman flags potential upside in non-software secular-growth stocks ahead of earnings.
Bank of America warns that artificial intelligence poses a generational threat to software stocks, citing Anthropic’s rapid ARR growth and a recent funding round that valued the startup at about $380B, which led BoA to cut price targets on European software names like SAP and ASML. The note suggests AI could squeeze profits for major software players such as Salesforce, Adobe, and Microsoft, as the sector remains under pressure even as some see potential upside from AI adoption.
AI-driven disruption fears spurred a broad software-stock selloff, with the iShares Tech-Software ETF (IGV) sliding about 4.8% and wiping roughly $223 billion in market value from its components in a single session. Big names like IBM, DDOG, and CRWD were hit, while analyst commentary pointed to Citrini Research’s AI productivity scenario and Anthropic’s Claude updates as factors fueling caution. Investors remain cautious and want clearer AI headlines before stepping back into software stocks, amid warnings the move could be overdone.
Artificial intelligence is reshaping the software industry, weighing on shares of former winners like Workday and Salesforce even as analysts have been slow to raise earnings forecasts. Goldman Sachs notes that software stocks tracked by IGV have fallen about 24% in three months, while two-year forward earnings estimates for the group have risen roughly 5%, highlighting a gap between price action and fundamentals. Valuations have fallen from around 35x to under 20x, prompting warnings that disruption could spill into other sectors. Despite the pullback, IGV carries a Strong Buy consensus with an average target of $128.86, implying about 59% upside.”,
S&P 500 software names trading near 52-week lows may offer selective, durable opportunities for long-term investors; a screen highlights large-cap SaaS names with strong ROA and improving valuation, with Adobe and FICO standing out under a modified framework, while AI disruption risks and ongoing volatility require patient, well-sized positioning.
Nvidia CEO Jensen Huang dismissed fears that AI will replace software, arguing AI will rely on software tools rather than reinventing them, even as software stocks drag tech shares lower. Speaking at a Cisco AI event tied to CES 2026, he described software as a tool for AI and pointed to ServiceNow, SAP, Cadence, and Synopsis as bright spots, even as the iShares Expanded Tech-Software Sector ETF falls about 4% and the sector remains in a bear market amid a broader market rotation. Stocks like Palantir, Applovin, Unity Software, and Hut 8 faced declines in Wednesday trading.
Anthropic unveiled Claude Cowork, an AI assistant capable of reading files, organizing folders, and drafting documents, plus new industry-specific plugins. The launch sparked a selloff in software and data-analytics stocks as investors fear AI could disrupt the software-as-a-service model, though analysts say the move may be sentiment-driven and could normalize once AI benefits prove measurable.
Global software equities extended losses for a second day as investors fret AI disruption, with European analytics and legal-tech names dipping after Anthropic unveiled Claude-based tools. A JP Morgan analyst underscored long-term growth risks and cautious investor appetite, while advertising groups like Publicis and WPP also declined. SAP slid over 3% following weak cloud guidance, even as Nvidia and Microsoft propel AI-driven US gains, prompting regulators to warn of a potential tech bubble.
Software stocks plunged in January amid fears that AI tools could disrupt enterprise software, even as fundamentals remained solid and valuations cooled. Analysts suggest the selloff could be temporary and that high-quality names like Microsoft—with Azure contributing to resilience—may offer compelling buying opportunities as investors reassess stretched multiples.
Palantir's stock and the broader software sector are experiencing significant declines, with technical breakdowns suggesting further downside potential. The iShares Expanded Tech-Software Sector ETF and key stocks like Palantir and Intuit are showing signs of weakness, though some infrastructure stocks like Synopsis demonstrate resilience. Investors are advised to play defense until the technical picture improves.
Salesforce and other top software stocks like Adobe, Workday, Atlassian, and Snowflake are experiencing a sell-off due to weak near-term results and guidance, despite optimism around AI. The iShares Expanded Tech-Software Sector ETF is recommended for those looking to buy the dip in the software sector, offering broad exposure and diversification benefits. However, caution is advised due to potential volatility and economic uncertainties affecting SaaS companies' growth.
Salesforce and other top software stocks have seen significant declines due to weak guidance and slowing growth, despite strong long-term prospects in AI. The iShares Expanded Tech-Software Sector ETF is recommended for those looking to buy the dip and gain diversified exposure to the software industry.
Software stocks plummeted due to disappointing quarterly reports from Salesforce and UiPath, with Salesforce dropping 19.7% and UiPath 34%. The decline is attributed to massive AI spending by customers, which is straining budgets for other software services. UiPath's CEO chaos and consistent losses further exacerbated its stock collapse, now down 85% from its peak. Other major software companies also saw significant declines.