In recent weeks we called the embattled software stocks (AI Disruption Trade) to outperform the semiconductors (The AI Buildout Trade), and this has played out with a more than 25% outperformance by the software stocks, although most of this has been generated by the weakness in the semiconductors. Overnight, even when the likes of Micron and Advanced Micro Devices fell away, we saw Intuit and Salesforce both firm nicely.
- We see ongoing outperformance by the software stocks in the coming months.
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S&P 500 Software & Services Index v Philadelphia Semiconductor Index (SOX)
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S&P 500 Software & Services Index v Philadelphia Semiconductor Index (SOX)
This morning we’ve briefly revisited 6 AI-facing ETFs, from more than one side of the fence, focusing on where we would like to buy/sell them into current elevated volatility.
