US Software Indices Diverge as AI-Immune Groups Outrun 2 Vulnerable Categories
Updated
Updated · Apollo Global Management · Jul 26
US Software Indices Diverge as AI-Immune Groups Outrun 2 Vulnerable Categories
1 articles · Updated · Apollo Global Management · Jul 26
Summary
Security and infrastructure software have pulled ahead of the broader US software benchmark, while application and vertical software have fallen behind in a sharp AI-driven split.
Investors are rewarding segments tied to data backbones, compute pipelines and protection systems because Generative AI is expected to expand demand for those layers rather than replace them.
Application and vertical software are lagging as markets price in disintermediation, lower switching costs and weaker seat-based licensing demand from automated AI workflows.
The performance gap signals a broader market preference for foundational software layers over legacy applications as AI reshapes software business models.