Latest news with #iSharesExpandedTech-SoftwareSector
Yahoo
13-05-2025
- Business
- Yahoo
Oracle Partners With seQure To Bolster Cybersecurity For Governments, Enterprises
Oracle Corporation (NYSE:ORCL), along with seQure, a cybersecurity firm and its partner, disclosed the availability of seQure's Ground-Truth service on Oracle Cloud Infrastructure (OCI). The company said that Ground-Truth is a cybersecurity and data observability service that helps automate the detection of threats and vulnerabilities and can reduce event alerts by 90%. Previously an on-premises solution, Ground-Truth can now be deployed across Oracle's various cloud offerings, including public, government, sovereign, and dedicated cloud with Oracle's security framework allows seQure to offer customers sophisticated, AI-powered threat detection while meeting data localization needs. This enables operational flexibility in intricate environments, compliance with regulatory, security, and performance standards, and unlocks the complete advantages of cloud and sovereign AI capabilities. Rand Waldron, vice president, Oracle said, 'This partnership helps our combined customers identify unknown cyber threats and anomalies faster and more accurately. In addition, it enables customers to benefit from OCI's built-in security, leading performance, and flexibility.' Jason Turner, chairman and CEO Entanglement stated, 'OCI's high-performance infrastructure and scaling was essential for deploying this solution and enabling us to provide our customers with the benefits of automated scaling, robust security features, and predictable pricing.' Last week, IBM disclosed a collaboration with Oracle to integrate IBM's premier AI platform, Watsonx, with Oracle Cloud Infrastructure (OCI). Investors can gain exposure to the stock via Pacer Funds Pacer Data and Digital Revolution ETF (NYSE:TRFK) and iShares Expanded Tech-Software Sector ETF (BATS:IGV). Price Action: ORCL shares are up 0.70% at $158.32 at the last check on Tuesday. Image by Mdisk via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? ORACLE (ORCL): Free Stock Analysis Report This article Oracle Partners With seQure To Bolster Cybersecurity For Governments, Enterprises originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
26-03-2025
- Business
- Yahoo
Nvidia Takes a Hit: Why AI Investors Are Moving Away from Chips to Software
U.S. chip stocks, which enjoyed the spotlight during last year's AI investment boom, have taken a noticeable hit this year as investors shift focus to software companies—the emerging engine of AI value creation. Tariff‐driven volatility and a dimming demand outlook, compounded by the emergence of lower‐cost AI models from China's DeepSeek, have put pressure on semiconductor shares. For example, the Philadelphia Semiconductor Index has fallen about 6% year‐to‐date, and industry leader Nvidia (NASDAQ:NVDA) has dropped nearly 14% from its recent December high. Don't Miss: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. This startup is on the brink of a huge disruption to a $654 billion industry – . Meanwhile, the software sector is showing robust gains. Companies such as Atlassian (NASDAQ:TEAM), CrowdStrike Holdings (NASDAQ:CRWD), Palantir Technologies (NYSE:PLTR), and Cognizant (NASDAQ:CTSH) have surged between 7% and 19% this year, reflecting growing investor confidence in AI-driven applications. Capital flows further illustrate this shift. The iShares Expanded Tech-Software Sector ETF (CBOE: IGV) has attracted over $1.87 billion in inflows through Feb. 28, while both the iShares Semiconductor ETF (NASDAQ:SOXX) and the VanEck Semiconductor ETF (NASDAQ:SMH) have seen over $1 billion in outflows each. In 2024, the iShares Expanded Tech-Software Sector ETF experienced significant inflows, including a $277 million addition on Oct. 14. The VanEck Semiconductor ETF also saw substantial growth, with a 40.4% year-to-date increase as of Dec. 23, driven by rising demand for AI applications and cloud computing. Trending: Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – According to Reuters, this rotation appears to be a natural progression. Adam Turnquist, chief technical strategist at LPL Financial, explained that "the shift is a natural progression for AI investing—as the use cases for AI evolve, the true revenue drivers are emerging in software applications." In addition, Morgan Stanley equity analyst Keith Weiss said, "We're now starting to see the ascendancy of the software part of the equation, as companies begin to monetize their AI solutions effectively." Yet, caution remains regarding the indispensable role of semiconductor hardware. According to Investors Business Daily, while software revenues offer stability, the performance of Nvidia's GPUs is critical for powering AI, and no clever software can fully compensate for a basic lack of processing launch of a lower-priced chatbot has intensified competitive pressures. Goldman Sachs analyst Ryan Hammond said, according to Investor's Business Daily, that "the AI trade will broaden and that stocks with AI-enabled revenues offer better risk/reward for new capital than those involved in infrastructure" Escalating Sino‑U.S. trade tensions and export restrictions add further uncertainty to the chip sector, prompting many to see software investments as a more stable, long-term opportunity. Read Next: This platform is reshaping how you invest in private companies — Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Nvidia Takes a Hit: Why AI Investors Are Moving Away from Chips to Software originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Yahoo
17-03-2025
- Business
- Yahoo
D.A. Davidson ups Monday.com to Buy as pullback creates compelling entry point
-- D.A. Davidson lifted its rating on shares to Buy from Neutral, citing an attractive entry point following a recent pullback in the company's stock price. The company's shares rose nearly 3% in premarket trading Monday. The investment bank's analysts feel confident about the sustainability of cash flows and the growing enterprise adoption of its services. The upgrade comes on the heels of the company's strong forward guidance for revenue growth and its consistent performance despite broader market concerns. stock had declined by approximately 20% over the past month, a steeper drop than the 14% fall seen in the iShares Expanded Tech-Software Sector ETF (IGV) during the same period. According to D.A. Davidson's Lucky Schreiner, the pullback was seen as an opportunity to reassess the company's prospects, leading to a more bullish stance. The project management software maker's robust guidance for fiscal year 2025, with expected revenue growth of around 25%, was particularly highlighted as a positive indicator. Schreiner views its growth trajectory as durable, driven by strong demand for its customer relationship management (CRM) product and positive early adoption of Monday Service. The company's move upmarket has shown success, with an increase in net new $100K customers and improvements in its Net Dollar Retention (NDR) rate for these clients. Enhancements to mondayDB and growing momentum with partners are also contributing to the company's enterprise adoption. Further supporting the stock's valuation is strong free cash flow (FCF) margins, which reached 30% last year. The company expects this figure to be around 25% in fiscal 2025 as it ramps up investments in sales and R&D hiring. Meanwhile, gross retention remains at record highs, with minimal churn among small and mid-sized businesses. Should its thesis prove wrong, Schreiner sees downside protection in the company's guidance, which 'implied 100-200bp of FX headwinds, roughly ~$15M, from a strong dollar which has since weakened.' 'Guidance also assumed stable net dollar retention (NDR) of 112% despite three quarters of improvement in that metric factoring in potential macro headwinds. And is likely to benefit modestly from new AI usage revenue providing some cushion around results,' he continued. D.A. Davidson's price target on shares of $350 was unchanged. Related Articles D.A. Davidson ups to Buy as pullback creates compelling entry point Fitch affirms Poland's 'A-' rating with stable outlook Fitch puts Global Net Lease on positive rating watch after portfolio sale announcement Sign in to access your portfolio
Yahoo
06-03-2025
- Business
- Yahoo
As US chip darlings struggle, some bet on software as next big AI play
By Lisa Pauline Mattackal and Johann M Cherian (Reuters) - U.S. chip stocks were the biggest beneficiaries of last year's artificial intelligence investment craze, but they have stumbled so far this year, with investors moving their focus to software companies in search of the next best thing in the AI play. Tariff-driven volatility and a dimming demand outlook following the emergence of lower cost AI models from China's DeepSeek have shifted the spotlight away from semiconductor shares. Several analysts see software's rise as a longer-term evolution as attention shifts from the components of AI infrastructure. There has been a pretty clear rotation in part due to DeepSeek, the semiconductor outperformance last year and restrictions on U.S. chip exports to China, said David Russell, global head of market strategy at TradeStation. "Investors are looking for the next three-to-five-year stories ... those companies that are going to benefit from what Nvidia has already done." The Philadelphia SE Semiconductor index has dropped 5.6% this year, while industry heavyweight Nvidia has slumped nearly 13%. In contrast, some software companies have rallied, with Atlassian, CrowdStrike Holdings, Palantir Technologies and Cognizant up between 7% and 19%. Exchange-traded funds tracking software companies have also notched inflows. The iShares Expanded Tech-Software Sector ETF has pulled in over $1.87 billion this year through February 28, according to Morningstar data, compared with more than $1 billion in outflows each for the iShares Semiconductor ETF and the VanEck Semiconductor ETF. The inflows to the IGV fund have already outpaced last year's total net inflows of $446 million, VettaFi data showed. The iShares and VanEck chip ETFs pulled in $2.46 billion and $6.55 billion, respectively, in 2024. The shift is a natural progression for AI investing as the use cases for the technology are primarily in software, said Adam Turnquist, chief technical strategist at LPL Financial. LPL, an investment advisory firm, favors software over chips. Morgan Stanley also favors software companies as adoption of AI tech increases. "The second stage of the innovation cycle is when people start utilizing products and that's when the software companies start getting paid ... we're now starting to see the ascendancy of the software part of the equation," said Keith Weiss, equity analyst at Morgan Stanley. The shift comes as investors question how much longer chips can maintain 2024's rate of growth, when many software companies underperformed. DeepSeek's lower-priced chatbot highlighted how competition will drive down profits for direct-to-consumer AI products and enterprise software companies may find it easier to monetize new technology, said Brian Mulberry, portfolio manager at Zacks Investment Management, who has trimmed holdings of Nvidia since last June. Semiconductor stocks have also been affected by an escalating Sino-U.S. trade war. DIVERGENT TRENDS Analysts who spoke to Reuters named companies including Palantir, Microsoft, Oracle and Salesforce as favored software plays. However, performance of these stocks has diverged sharply this year. Palantir, which sells AI software to companies, has rallied. Microsoft and Salesforce are down 4.9% and 12.6%, respectively, hit by a broader selloff in U.S. stocks and as AI returns have yet to meaningfully show up on corporate balance sheets. Morgan Stanley's Weiss said it could take until 2026 for those returns to benefit some companies. Valuations are still expensive, with Microsoft and Oracle trading around 27 and 23 times forward earnings, respectively, compared with Nvidia's 24.6, according to data compiled by LSEG. Still, some investors are willing to play the long game. "We don't need more Nvidia chips, we need applications," said Lisa Shalett, chief investment officer, Morgan Stanley Wealth Management. Sign in to access your portfolio
