Software stocks should keep grinding higher as the market reduces the AI fear factor. Much of the software rally since the April lows was just erasing past losses, and many names remain well below their all-time highs. Since those lows, software has risen almost as much as semiconductors with about 10x less noise. x.com 

Software looks like a group that can lead the market higher, with many names from Palantir and ServiceNow to Zeta and MongoDB moving from late Stage 4 or Stage 1 into early Stage 2 uptrends. Sentiment is at an all-time low on fears that AI agents and chatbots will replace SaaS. AI will disrupt some areas, but many software businesses are using it to grow revenue, ship faster and expand operating leverage, and will thrive. The charts will separate survivors from the dead. x.com  x.com 

The rally in US software stocks is really long in the tooth, if anyone is still left who believes AI alternatives run by one- or two-person shops can cannibalize a lot of software. x.com 

Software stocks are becoming the next leadership group, as the functional layer of AI turns hardware investment into real-world outcomes. Software is now leading hyperscalers and crypto, a sign the market is correcting its mispricing of the AI timeline. Those outcomes are still in the first inning, and significant acceleration is expected. x.com 

The software selloff looks overdone, as AI seems to be creating dispersion rather than killing software. All 13 S&P 500 software companies that have reported so far beat EPS estimates, and software stocks are up about 40% from their April lows. x.com 

AI embedded throughout software could bring huge future token spend to Amazon and Alphabet, whose AWS and GCP clouds host software builders and offer AI platforms. Ramp data show VC-backed firms spend 10 times more per employee on AI monthly than PE-owned and other firms, a possible leading indicator of software using more tokens relative to people. VC-driven demand is vulnerable to capital-cycle swings, but longer term incumbent software may become AI-native or be replaced. x.com 

SaaS will have its time in the sun again, and now, while it is still hated, is the time to pick favorites and build positions. Bearish sector narratives don't last forever, and the view that all SaaS is being disrupted should ease somewhat this summer, though multiples may not return to prior levels. Some SaaS names have little moat against Anthropic and peers, but many, especially cybersecurity and Palantir, are strengthened by the agentic push. x.com  x.com  x.com 

Software is having its best stretch, having come back alive rather than collapsing. The software doomsday story is simplistic, because people exaggerate change into extinction and assume new products drive old ones to zero. Creation and disappearance aren't instant; AI won't end software, it will only reorder what we thought mattered. Investors should focus on how existing valuation methods break down, not on easy logic. x.com 

Software incumbents like monday.com and CrowdStrike should hold their ground because companies will lean on existing software to integrate AI rather than rip it out. Token shortages make AI hardly usable without top-dollar spend, so firms with no business vibe-coding will use software they already pay for, which can scale to get cheaper tokens. No CEO will risk their job, and no CTO will ask the board to scrap a costly software investment. The market won't go much higher without software. x.com  … Show more

Software holds the best value in a market of overbought, problematic AI trades, and sentiment toward it is quickly turning bullish. Even long-avoided Oracle could warrant a starter position on a dip into the $141-137 buy range, or on a close above the $147.5 support-resistance flip. Microsoft, Cloudflare, Adobe and ServiceNow are among the software names in focus. x.com  x.com