Tech’s ‘New Normal’ Trade Pair: Long Chip Stock, Short Software

In a choppy year for tech investors, one trade has stood out as a success: buy chip stocks, sell software shares. And the divide between winners and losers is getting bigger as 2026 moves along.

“We’re likely in a new normal, where growth and margins for semis keep getting re-priced higher and growth and margins for software keep getting re-priced lower,” said Kevin Shea, senior equity strategist at BNY Wealth.