$Microsoft(MSFT.US)Microsoft and many software names have definitely felt like the funding source for the AI trade lately. Money keeps flowing into semiconductors, while software gets sold whenever investors need capital for the next AI infrastructure winner.

What‘s frustrating is that the fundamentals haven’t deteriorated nearly as much as the price action suggests. Cloud growth remains solid, cash flow is strong, and AI monetization is still progressing. The problem is that semis offer immediate earnings acceleration, while software is still asking investors to wait.

That doesn‘t mean software is broken forever. Markets rarely reward the same group indefinitely. The issue is timing. As long as capital remains obsessed with chips and hardware, software may continue to underperform even with decent results. Eventually valuation starts to matter, but right now the market is still paying up for certainty and ignoring patience.

@Bridge Buzz SG