Wall Street has been debating the SaaSPocalypse for months, if not years. Goldman Sachs studied how hedge funds and mutual funds are approaching the space—and found a major shift in investing.
Software & Services as an industry group is down 14% year-to-date and has lost 9% over the last 12 months. Semiconductors & Semi Equipment are up 38% YTD and have surged 104% in the past year. The performance gap is staggering, but it’s a symptom, not the cause. The cause is a fundamental reassessment of where AI value actually accrues — and the answer, increasingly, is not in the application layer.
