Software Stocks Roar Back, Led by Salesforce and Microsoft
Software stocks have seen a significant resurgence in the third quarter of 2026, according to CNBC's Jim Cramer. This rebound is attributed to fears surrounding the impact of artificial intelligence on traditional business models dissipating.
The major averages posted modest gains during this period, but beneath the surface, there were notable shifts in market leadership. Software stocks made a remarkable comeback, while chip names cooled off after a strong first-half run. The iShares Expanded Tech-Software Sector ETF (IGV) rose by 17% during the quarter, outperforming the iShares Semiconductor ETF (SOXX), which declined by 11%
CNBC's Jim Cramer believes that this trend is likely to continue, naming Salesforce and Microsoft as potential winners. However, he cautions that higher interest rates pose a significant risk heading into the new quarter.