Software Companies’ Market Cap Drops 26% in Six Months

Software sector's market cap fell 26% to $1.3 trillion; AI stocks surged.

The market capitalization of the software sector has decreased by 26% over six months, reaching $1.3 trillion. Meanwhile, amid the AI rally, certain infrastructure players have surged: Bloom Energy’s shares have gained over 240% in half a year, while Quanta Services and MasTec have seen increases of more than 300% since May 2023. The AI stock boom in the United States has continued since May 2023, when a strong report from Nvidia marked a turning point for the sector. During this period, the American semiconductor index rose by 423.9%, compared to 85.6% for the broader US market.