Enterprise software stocks rally as AI hardware selloff sparks rotation into software sector.

Shares of enterprise software companies like monday.com, HubSpot, and Intuit surged between 5% and 7% amid a broad tech selloff focused on AI hardware stocks. This rotation was triggered by lower-than-expected AI revenue projections from Anthropic and concerns over massive off-balance-sheet AI commitments by top tech firms, combined with a rise in 30-year Treasury yields. Investors are moving money into sectors perceived as safer, including software, which benefits from subscription models without heavy AI capital expenses. Despite the bounce, these stocks remain down significantly year-to-date, but recent strong earnings reports and guidance provide some support. Intuit’s upcoming fiscal Q4 results on August 25 will be a key event to watch next.