Software Sector Sees Resurgence Amid AI-Driven Cyber Threats
The software sector has been experiencing a resurgence in the second half of 2026 after a disappointing first half. The iShares Expanded Tech Software ETF (IGV) has gained 12.3% over the past month, indicating a turnaround in fortunes for software stocks.
Security is a major growth area within the software sector, with stocks such as Palo Alto Networks (PANW) and Crowdstrike (CRWD) leading the way. Both stocks have reached all-time highs this week, with Palo Alto gaining 114% year-to-date and Crowdstrike up 95%. Cloudflare (NET) and Fortinet (FTNT) are also performing well.
Microsoft (MSFT) and Palantir (PLTR) have also staged a comeback after disappointing investors earlier in the year. However, they still have some way to go to reach their all-time highs.