Software ETF Rally of 42% Elevates Synopsys Among Top AI Picks
SNPS•The iShares Expanded Tech-Software Sector ETF has surged nearly 42% from April lows, cutting its 2026 decline to under 2%, as investors bet on AI integration driving demand. Analysts highlighted Synopsys as a favorite after strong guidance from Snowflake and MongoDB and Nvidia’s CEO forecasting AI-driven software demand.
1. Software Sector Rebounds Strongly
The iShares Expanded Tech-Software Sector ETF has climbed nearly 42% from its April lows, narrowing its 2026 decline to under 2%, as investors increasingly view AI integration as a growth driver rather than a disruptor.
2. Synopsys Emerges as Top Pick
Equity analysts have identified Synopsys as a leading beneficiary of AI adoption in chip-design software, alongside peers such as Datadog and Palo Alto Networks, citing usage-based pricing models and robust market positioning.
3. AI Earnings and Forecasts Fuel Optimism
Recent strong results and guidance from Snowflake and MongoDB, combined with Nvidia’s CEO forecasting increased AI-driven software demand, have reinforced the view that software firms will be primary beneficiaries of the AI expansion.
