Semiconductors are out, software is in. Why that’s not about to change anytime soon
Some investors are betting that infrastructure software companies are among the best positioned to take on challenges in the coming year.
TL;DR
- Software stocks, like Workday, have seen significant gains after an initial slump earlier in the year.
- Investors are shifting capital from semiconductors to infrastructure software and AI application companies.
- Concerns about a potential market slowdown in 2027 are driving a defensive rotation in the market.
- Companies that own user platforms and daily productivity hubs are expected to perform well.
- The narrative around AI replacing software packages has largely receded, replaced by optimism about new AI products and partnerships.