The iShares North American Tech-Software ETF rallies 35% from April lows, signaling renewed investor confidence in traditional software stocks.
The iShares North American Tech-Software ETF (IGV) closed above its 200-day moving average on Friday for the first time since January. The move marks a 35% rally from its April 10 lows, reflecting a shift in sentiment toward software stocks amid lingering AI disruption concerns.
The 200-day moving average is widely regarded as a key trend indicator, smoothing short-term volatility to highlight long-term momentum. Software stocks have faced pressure as enterprises delay purchases to assess AI’s impact on traditional SaaS models, but recent earnings from Snowflake (SNOW) and strength in cybersecurity names like CrowdStrike (CRWD) and Palo Alto Networks (PANW) have provided a lift.
Despite the rebound, Wall Street remains cautious about AI’s potential to render legacy enterprise software obsolete. Revenue growth for software firms has slowed through 2025, with clients adopting a wait-and-see approach to AI adoption.