Software Roared Back Last Quarter. Cramer Says These Stocks Can Keep Climbing
Software stocks bounced back from their AI-driven sell-off, while chip stocks cooled after a massive first-half run.
TL;DR
- Software stocks experienced a comeback in the third quarter after an artificial intelligence-driven sell-off.
- Salesforce, Microsoft, Workday, and Veeva saw significant gains due to eased fears of AI disruption and AI integration.
- Cybersecurity stocks like CrowdStrike also performed well, driven by the increasing need for protection against new threats.
- Some previous data center leaders, such as Corning and Caterpillar, cooled off due to profit-taking, but Cramer sees potential buying opportunities.
- A major concern for the upcoming quarter is the Federal Reserve's potential to continue raising interest rates.
- The upcoming earnings season is expected to provide clarity on how higher borrowing costs are affecting companies.