Extreme Divergence: Chip Stocks, Software and AI

Once considered “blue chip” software names, the shares of Salesforce (CRM), Adobe (ADBE) and ServiceNow (NOW) are down 39%, 41% and 52%, respectively, over the last year. Meanwhile, chip stocks (those in the industry powering the AI revolution) are up 141% over the last year, as measured by the iShares Semiconductor ETF (SOXX).