Key insights
- An investor bullish on enterprise software anticipates it will be the next major beneficiary of the AI trade, potentially outperforming semiconductors. The thesis suggests that despite recent underperformance relative to semis, software holdings like MSFT, PANW, ORCL, and NOW are poised for significant gains as AI adoption drives enterprise demand. This perspective offers a bullish outlook for the software sector within the broader tech market.
I am a software investor who went in big with leaps on a basket of software names when they were cheap in q1 this year: MSFT, PANW, ORCL, NOW. I was up moderately in q2 but seeing semis literally going to the moon daily while my MSFT holdings stay flat during up days and going down during down days were hard. I didn’t doubt my thesis but it was a tough period thinking if I should’ve positioned more semis.
To my software holders out there, it’s just getting started. The enterprise software end will be the next primary beneficiary end of the AI trade and we will win bigger than Jensen’s Huang and Lisa’s Su!