iShares Expanded Tech-Software Sector ETF Surges 1.9% After Cramer AI Rebuttal
The iShares Expanded Tech-Software Sector ETF has plunged 26.5% over six months and 23.6% YTD, yet surged 1.9% Tuesday after Jim Cramer denounced a doomsday AI thesis as “science fiction.” Goldman strategists report asset-heavy stocks have outpaced capital-light software names by 35% since early 2025.
1. Cramer Rejection Spurs Rally
Shares of the iShares Expanded Tech-Software Sector ETF jumped 1.91% on Tuesday after Jim Cramer dismissed a viral AI thesis predicting a market crash by calling it “high-stakes science fiction,” giving investors a short-term boost in software equities.
2. Steep Drawdown Gains Context
IGV has endured significant losses, falling 26.51% over the past six months and 23.59% year-to-date, reflecting widespread sector weakness as AI-driven valuation concerns weigh on capital-light software stocks.
3. Institutional Shift to HALO Assets
Goldman Sachs strategists highlight a rotation into capital-intensive, asset-heavy companies—dubbed “HALO” assets—that have outperformed capital-light software names by 35% since early 2025, underscoring a defensive stance against AI apocalypse risks.