Rotation from AI Hardware to Software Stocks

Software stocks are surging as bond yields spike and AI capex concerns mount. Monday.com (+7%), HubSpot (+6%), and Intuit (+5%) are leading the rotational trade from AI hardware. The move is notable given their depressed YTD levels, but not yet a trend reversal. Intuit's earnings next week is a key catalyst. Mag-7 underperformance vs semis reinforces this rotation.