Yahoo Finance
Chips are still stuck in a bear market — except Nvidia (NVDA) never really joined them.
Software bottomed right around then, kicking off a multitrillion-dollar reversal that has sent the two groups in almost perfectly opposite directions.
Strip out the megacaps, and the symmetry is wild.
Theequal-weightSPDR S&P Software & Services ETF (XSW) is up about 24% since then, while the equal-weight SPDR S&P Semiconductor ETF (XSD) is down about 24%.
That nearly 50-percentage-point gap is the widest comparable software-over-chips move in the ETFs' history, dating back to 2011.
In a Yahoo Finance basket of 45 software stocks, 37 are higher since June 22.
Microsoft (MSFT) alone has added nearly $900 billion in market value since the turn.
Micron (MU), Taiwan Semiconductor Manufacturing (TSM), Arm (ARM), and AMD (AMD) have collectively shed roughly $950 billion.
Across the full comparison, software has added about $1.5 trillion, while chips have lost roughly $2.6 trillion.
Fundstrat head of technical strategy Mark Newton thinks software simply got its pain out of the way first.
"They've already been through this correction, and now they've started to trade a lot better," he said.
Software hadtried to grab the baton from chips this spring, only to lose it again.
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