Software ETF IGV Rebounds 20% as Traders Bail on Chip Darlings
The nerdy corner of tech is getting attention again. The iShares Expanded Tech-Software ETF has climbed more than 20% from its April lows, putting it back in bull-market territory and at its highest level since January. The bounce comes as investors pull back from red-hot chip names after the iShares Semiconductor ETF fell 7.2% and logged its worst two-day drop since Apr. 2025.
- Microsoft saw a wave of bullish options activity, while ServiceNow jumped 9% after BofA reinstated coverage with a buy rating and $130 price target.
- Europe joined the rally too, with SAP gaining 6.2% and Capgemini adding 5% as the region’s software sector advanced 4.1%.
Not so fast: Software stocks have taken a beating in 2026 on “SaaSpocalypse” fears that AI agents could disrupt traditional software businesses. Even after the rebound, the is still down 12% this year, and some on Wall Street remain cautious. Tikehau Capital’s Raphael Thuin noted, “This is not yet an all-clear moment for the industry,” warning that volatility may not be over.
