Goldman Sachs just ran some ugly numbers on the SaaSPocalypse—and found hedge funds are dumping software and piling into semis
Hedge funds and mutual funds are significantly reducing their investments in software companies, shifting capital towards semiconductor stocks. This trend, highlighted by Goldman Sachs' analysis of $9 trillion in equity positions, indicates a reassessment of where value is generated in the AI era, with a growing belief that value accrues more in hardware than in applications. Despite this rotation, projections suggest the global app software market will still reach $780 billion by 2030, with AI potentially expanding the overall market. AI
IMPACT Investment strategies are shifting away from software applications and towards semiconductor hardware, reflecting a reevaluation of where AI value is generated.