Software's relative strength and sound finances make institutional rotation from semis plausible. It could lead while semis consolidate, despite slow growth at some firms; the market rewards cash flow, healthy balance sheets and manageable debt. Salesforce, ServiceNow, Palantir, Shopify and Workday hold up; SAP's cloud and AI shift, Instacart's massive 10-month base, Veeva's massive five-year base and Atlassian's Stage 2 strength add to the case. Semis may still rally; the view can change. x.com  … Show more

Crowded AI infrastructure and semiconductor trades have already priced in years of growth, while beaten-down power and utility stocks remain fundamentally strong. Utility names look preferable to most of those stocks moving forward; accumulate quality into capitulation and deeply oversold conditions rather than chase the crowded trades. x.com 

Some semiconductor stocks have returned to reasonable valuations as fundamentals improve, making recent declines buying opportunities. Many had traded at two to three times their median valuations; the correction brought some back toward normal, while sustained AI spending should benefit suppliers for years. x.com 

Low forward earnings multiples across eleven stocks cannot persist indefinitely. Nvidia trades near 17.5x, its lowest in over a decade; Oracle near 15x, its lowest in six years. Uber is at 17x, Broadcom 19x, Vistra 15x, AppLovin 14.5x, TSMC 19x, Forgent Power Solutions 18x, Nokia 19.5x, American Express 17x and Western Digital 14x. x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com  x.com 

Software stocks are bouncing back as investors realize companies like Microsoft and Oracle are becoming essential AI infrastructure rather than being replaced by AI. The IGV software ETF jumped about 13% last week, suggesting the worst panic selling may be over, and Bank of America sees a bottom forming. Even the hardest-hit names, Salesforce and Palo Alto Networks, are showing signs of life as investors move from fear back to quality. The sector is not completely out of the woods yet. x.com 

Semiconductor earnings will be good, supporting a likely run into Q3 results. The group looks oversold, and the Anthropic/CoreWeave news is noise. x.com  x.com  x.com  x.com 

Money is likely to rotate from crowded, richly valued AI hardware into undervalued large-cap AI beneficiaries in software, fintech and power. Microsoft's Copilot monetization is just starting, Oracle's cloud is accelerating at a discount to hyperscalers, ServiceNow gains from agentic automation, Snowflake's valuation is long compressed, and Salesforce is overlooked. SoFi gains from rate cuts, Robinhood from crypto and options, and Constellation and Vistra from power, AI's bottleneck. x.com 

Semiconductors still look likely to lag on a risk-adjusted basis, even if Treasury intervention such as yield-curve control changes the broader picture. They should have been rallying hard this week and are not acting right for bulls, suggesting something is brewing, probably a capex disappointment. Hyperscalers may be closer to another leg up. x.com  x.com  x.com 

Money should rotate from software back into semiconductors as software multiples get frothier, a contrarian call against the current narrative that SaaS has an AI tailwind. x.com 

High-quality software stocks such as ServiceNow, Cloudflare, Figma and Palantir look set to gain as money eventually rotates out of crowded semis, memory, data centers, AI infrastructure, space and defense. Software is underloved, and these names rose in sympathy with Snowflake's strong earnings, possibly the start of a rotation. The quiet third month of the quarter is a good time to position for gains into mid-July earnings, and insider buying is a signal worth following. x.com