Does this mean the end of chip stock rally?

Not necessarily, but it indicates a shift in priorities. Chip stocks may still perform well long-term, but software is currently attracting more attention.

Which other software stocks rose?

In addition to ServiceNow, Workday, and AppLovin, stocks like Salesforce and Adobe also gained.

Software Stocks Surge: ServiceNow, Workday, AppLovin Lead Market Rotation

Q: Is this rotation temporary or long-term?

It's too early to tell, but it reflects expectations that the AI infrastructure buildout phase may be giving way to an applications phase.

Major software stocks including ServiceNow, Workday, and AppLovin are posting notable gains, leading the S&P 500, signaling a shift in investor preference from semiconductor stocks to software.

June 26, 2026

1 min read

Source: Barrons.com

Major software stocks including ServiceNow (NOW), Workday (WDAY), and AppLovin (APP) are posting notable gains in recent trading sessions, leading the S&P 500 and signaling a shift in investor preference from semiconductor stocks to software.

Potential Reasons

The move comes amid a changing AI narrative, with investors now focusing on software companies that can generate tangible AI revenue, rather than chipmakers that benefited from infrastructure demand.

Context

Over the past month, semiconductor stocks like Nvidia (NVDA) and AMD (AMD) have faced selling pressure, while software stocks have seen buying flows. This rotation reflects expectations that the AI infrastructure buildout phase may be giving way to an applications and software phase.

Similar Moves in the Sector

In addition to the three stocks mentioned, other software companies such as Salesforce (CRM) and Adobe (ADBE) also rose by smaller percentages, confirming the breadth of the sector rotation.

Frequently Asked Questions

Investors are rotating from semiconductors to software, as the AI narrative shifts toward companies that can generate revenue from applications rather than infrastructure.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.