Tom Lee adds software to top picks and buys iShares tech-software ETF

7 articles · Updated · MarketWatch · May 1

The Fundstrat strategist said the S&P 500 Software Industry Index is down 18% this year versus a 5% gain for the broader S&P 500.
He argued software has erased underperformance since April 10 lows and that leading companies can adapt to and benefit from AI over the next 12 to 24 months.
Lee named Microsoft, Alphabet, Amazon, Salesforce and Adobe as top software stocks, and said a recovery could also ease pressure on private credit investors exposed to software debt.

Can software stocks truly rebound if the AI they champion is actively devaluing their core products and displacing their human talent?

While Wall Street bets on a software comeback, is a private credit crisis brewing as AI threatens to make software loans worthless?