Software stocks rebounded sharply after an April selloff, driven by fears that AI agents would reduce the number of per-seat licenses. The iShares Expanded Tech-Software Sector ETF (IGV) rose 41.46% from April 13 to October 12, 2026, closing at $111.31, ahead of QQQ (+20.84%) and SPY (+13.41%). Over longer periods, IGV is still down 0.68% over one year and up 5.34% year-to-date, although it gained 9.64% in the past month. The author suggests the rally may reflect investors paying more for similar forward earnings rather than faster earnings growth, and remains cautious until net revenue retention and seat data improve. IGV charges a 0.38% annual fee, and the author views QQQ as offering broader exposure to AI.
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