Software Stocks Rally 17% in Q3 as AI Confidence Lifts Salesforce and Microsoft

2 articles · Updated · CNBC · Oct 1

Enterprise software led the third quarter’s market rotation, with the IGV software ETF rising 17% while the SOXX semiconductor ETF fell 11% as investors shifted away from earlier data-center winners.
AI optimism drove the rebound: Salesforce jumped 46% after pitching tools like Claudeforce and posting a strong quarter, while Microsoft gained 37% on Copilot demand, faster Azure growth and improving returns from data-center spending.
Workday and Veeva climbed 55% and 60% as fears of AI disruption eased, and CrowdStrike added 39% as stronger AI increased the need for cybersecurity.
Some former leaders cooled sharply instead, with Corning down nearly 40% and Caterpillar off 24%, moves Jim Cramer framed largely as profit-taking rather than a break in the broader AI buildout.
Heading into Q4, Cramer said his main worry is rates after the Fed’s September quarter-point hike, with the coming earnings season likely to show how higher borrowing costs are hitting stocks.