Shares of enterprise software names are ripping higher at the end of Tuesday trading, bucking a broad tech selloff. monday.com (NASDAQ:MNDY | MNDY Price Prediction) is up 6.9%, HubSpot (NYSE:HUBS) is up 6.6%, and Intuit (NASDAQ:INTU) is up 5.2%, with all three still moving into the close.
AI Hardware Selloff Drives Rotation Into Software
The rotation is the story. The iShares Semiconductor ETF (NASDAQ:SOXX) is down sharply while the iShares Expanded Tech-Software ETF (NASDAQ:IGV) is up 0.6% intraday. That inverse pairing has been a recurring 2026 pattern, and today it is unusually clean.
The catalyst for today’s massive moves arrived over the weekend. Anthropic told investors its annualized revenue run rate hit $65 billion at the end of July, and Reuters reported the company is projecting 2028 revenue of $190 billion to $200 billion. Both figures came in below the whisper numbers circulating in Silicon Valley. Layered on top, the Wall Street Journal flagged that “Nine top tech companies had some $3 trillion of off-balance-sheet commitments mostly related to AI”, growing far faster than traditional capex.
Throw in that the 30-year Treasury yield hit a 19-year high today, sharpening the discount rate applied to those obligations, and you can see the main stories that coalesced into a broad market risk-off centered on AI hardware stocks.
Money is moving into healthcare, utilities, consumer defensive and energy. Inside tech, software is the perceived counter-cyclical, since seat-based and subscription models do not carry the AI capex bill.
A Relief Bounce Off Depressed Levels
Investors should acknowledge the starting point. These stocks have been punished all year on fears that generative AI compresses SaaS pricing power. Monday.com is down roughly 44% year to date and about 53% over the past year. HubSpot is down about 46% YTD and 51% over one year. Intuit is down about 49% YTD and 53% over one year. A single session in the 5% to 7% range does not repair drawdowns of that size.
Recent performance gives the bounce something to lean on. Monday.com posted Q2 revenue of $365 million, up 22% YoY, and disclosed that AI ARR doubled quarter over quarter and now represents 17% of net new ARR. HubSpot delivered 20% subscription revenue growth, expanded non-GAAP operating margin to 20%, and authorized an additional $1 billion buyback. Intuit reported $8.6 billion in fiscal Q3 revenue, up 10%, and raised full-year non-GAAP EPS guidance to $23.80 to $23.85.
What to Watch
The most immediate catalyst is Intuit, which reports fiscal Q4 results after the close on August 25. HubSpot and Monday.com have already reported. HubSpot’s next earnings come November 4, followed by Monday.com on November 9.
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