Software Stocks Surge 16% in August, Beating Chips by 15 Points in Record Split

2 articles · Updated · Yahoo Finance · Sep 1

IGV jumped more than 16% in August while SOXX finished up just 1%, marking a record divergence after chip stocks surrendered most of a near-10% midmonth rally.
Since Aug. 17, 58 of 61 semiconductor stocks in a Yahoo Finance basket fell, erasing about $1.1 trillion in market value as other physical AI trades also rolled over.
Atlassian nearly doubled in August, while Palantir gained more than 50% and Salesforce over 40%, underscoring that the software rally was broad rather than isolated.
September now opens with software holding the momentum, but history is less supportive later in the month: after strong Augusts, software median returns turned negative after Sept. 15 and semiconductors fell about 3.5%.
The split suggests August's market rotation away from weak chips can persist for a time, even as September has historically been the S&P 500's weakest month.