Software Stocks Rebound as Short Squeeze Lifts Salesforce 9% and Nvidia Slides 6%
Updated
Updated · CNBC · May 19
Software Stocks Rebound as Short Squeeze Lifts Salesforce 9% and Nvidia Slides 6%
3 articles · Updated · CNBC · May 19
Software shares outperformed Tuesday, but Jim Cramer said the move reflects hedge funds covering shorts rather than any meaningful improvement in demand or pricing power.
Heavy bearish positioning had built up as investors worried AI advances—especially newer models from Anthropic—could disrupt traditional software vendors, setting up a squeeze as prices rose.
Salesforce extended its winning streak to four sessions and more than 9%, while ServiceNow's recent surge included an almost 9% jump Monday after Bank of America reinstated coverage with a $130 target.
At the same time, money rotated out of AI hardware leaders; Nvidia was headed for a roughly 6% three-session losing streak ahead of earnings Wednesday.
Cramer said software ETFs may be amplifying the rebound, but he still favors semiconductor and hardware names tied to AI infrastructure and said he is not buying the software rally.
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