Earlier this year, it looked like the software industry was facing its own extinction event. The thinking had shifted to a simple question: if AI can design and automate the work we've traditionally used software for, what purpose does it serve going forward?
Then Jensen Huang (Nvidia's CEO) flipped the script. The narrative that software would be Blockbuster'd by AI was rejected by the very person who arguably stands to benefit the most from AI's rise.
Now, the story is by no means over. We still don't know which companies are genuinely insulated and which could end up being the next Kodak.
But that's exactly why I think this week's Market Insights is worth your time. It captures the irrationality of markets as they swing from one narrative to the next, and the opportunity sits in an investor's ability to discern the noise from the substance. The recent software cycle is a case in point.
Sincerely,
Mitchell Lawler, Senior Investment Editor
