Software stocks have gained momentum after spending much of 2026 under pressure from concerns that artificial intelligence would weaken the industry's long-term growth prospects. At the same time, semiconductor shares, which fueled much of the market's advance this year on expectations of massive AI-related spending, have pulled back as investors reassess whether planned investments in AI infrastructure will fully materialize, Bloomberg reported.
A widely followed software index has gained 2.2% in July, trimming its year-to-date decline to 12%. By comparison, the Philadelphia Semiconductor Index (SOX) has fallen 12% this month, although it remains up 78% for the year after posting its strongest quarterly performance on record.
