Large-cap U.S. software companies were largely among the gainers, turning the iShares Expanded Tech-Software Sector ETF (IGV) green on Tuesday despite the chip stocks tumbling amid the ongoing war between the U.S. and Iran.
The iShares Expanded Tech-Software Sector ETF climbed about 1.4% on Tuesday. The ETF consists of over 100 U.S.-traded software and technology companies, with heavy concentration in top players like Microsoft (MSFT), Palantir Technologies (PLTR), Oracle (ORCL), and Salesforce (CRM), among others. Shares of Salesforce rose around 2%, while Microsoft climbed nearly 1%. Palantir and Oracle were largely flat but in the green.
Software likely bottomed last week, according to Seeking Alpha analyst Amrita Roy. Roy said enterprise software as a service, or SaaS, sentiment is shifting from AI-driven commoditization fears to optimism, as Anthropic’s (ANTHRO) recent event highlights AI integration and data advantages for incumbents. Palantir, Cloudflare (NET), and ServiceNow are showing revenue acceleration, robust retention, and steady/expanding margins, positioning them as likely winners in the sector’s revival.
Some other companies in the ETF: Intuit (INTU), ServiceNow (NOW), Palo Alto Networks (PANW), and Adobe (ADBE) each surged about 4%, while Autodesk (ADSK) rose about 3%. AppLovin (APP), CrowdStrike (CRWD), and Fortinet (FTNT) each jumped nearly 2%. Synopsys (SNPS) rose about 1%, while Cadence Design Systems (CDNS) was largely flat.
Meanwhile, chip stocks tumbled on Tuesday after Asian markets saw red, including South Korea’s KOSPI Composite Index (KOSPI), amid potential impact on energy supplies and surging oil prices due to the ongoing clashes between the U.S. and Iran.