Semi Stocks Rally Hard While Software Margins Get Crushed

Semiconductor demand is off the charts because

➡️Hyperscalers investing on the back of insane growth in AI demand

➡️AI (Claude Code & Codex) is growing rapidly because it's insanely valuable for coding

➡️Software companies are in an AI-powered arms race to build more/better software

❌BUT software revenue growth is unimpressive and profits are under pressure because of AI costs and no pricing power because...anyone can make anything

❌AND software stocks are down big in 2026

For this multi-trillion dollar buildout to be worthwhile, the end customer has to be growing and making $$$.

I know "we're doing more with AI" sounds great, but does that translate to "we made more money because of AI?"

Is it possible this is all a house of cards?

😍 Been eyeing Tiger merch but short on Tiger Coins? Now's your chance.

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Now's your chance.</strong></p>\n<p style=\"text-align: left;\">🎁 We’ve selected 4 high-demand items across practial, lifestyle, and learning, now with a lower redemption threshold!</p>\n<p style=\"text-align: left;\"><strong><a href=\"https://ttm.financial/TW/554651083281352\" title=\"Hot Merch Returns · Up to 43% Off\" target=\"_blank\" class=\"\">Hot Merch Returns · Up to 43% Off</a></strong></p>\n<p><img src=\"https://community-static.tradeup.com/news/be0283b695178d5d32f9e254ddc1d4a1\"></p></body></html>","htmlText":"<html><head></head><body><p>Semiconductor demand is off the charts because</p>\n<p>➡️Hyperscalers investing on the back of insane growth in AI demand</p>\n<p>➡️AI (Claude Code &amp; Codex) is growing rapidly because it's insanely valuable for coding</p>\n<p>➡️Software companies are in an AI-powered arms race to build more/better software</p>\n<p>❌BUT software revenue growth is unimpressive and profits are under pressure because of AI costs and no pricing power because...anyone can make anything</p>\n<p>❌AND software stocks are down big in 2026</p>\n<p>For this multi-trillion dollar buildout to be worthwhile, the end customer has to be growing and making $$$.</p>\n<p>I know \"we're doing more with AI\" sounds great, but does that translate to \"we made more money because of AI?\"</p>\n<p>Is it possible this is all a house of cards?</p>\n<hr>\n<p style=\"text-align: left;\"><strong>😍 Been eyeing Tiger merch but short on Tiger Coins? Now's your chance.</strong></p>\n<p style=\"text-align: left;\">🎁 We’ve selected 4 high-demand items across practial, lifestyle, and learning, now with a lower redemption threshold!</p>\n<p style=\"text-align: left;\"><strong><a href=\"https://ttm.financial/TW/554651083281352\" title=\"Hot Merch Returns · Up to 43% Off\" target=\"_blank\" class=\"\">Hot Merch Returns · Up to 43% Off</a></strong></p>\n<p><img src=\"https://community-static.tradeup.com/news/be0283b695178d5d32f9e254ddc1d4a1\"></p></body></html>","text":"Semiconductor demand is off the charts because ➡️Hyperscalers investing on the back of insane growth in AI demand ➡️AI (Claude Code & Codex) is growing rapidly because it's insanely valuable for coding ➡️Software companies are in an AI-powered arms race to build more/better software ❌BUT software revenue growth is unimpressive and profits are under pressure because of AI costs and no pricing power because...anyone can make anything ❌AND software stocks are down big in 2026 For this multi-trillion dollar buildout to be worthwhile, the end customer has to be growing and making $$$. I know \"we're doing more with AI\" sounds great, but does that translate to \"we made more money because of AI?\" Is it possible this is all a house of cards? 😍 Been eyeing Tiger merch but short on Tiger Coins? Now's your chance. 🎁 We’ve selected 4 high-demand items across practial, lifestyle, and learning, now with a lower redemption threshold! 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