Money is rotating out of semiconductor stocks and into software stocks, according to a recent analysis. The iShares Semiconductor ETF (SOXX), which owns 30 semiconductor stocks, is up around 80% so far this year but has fallen by a double-digit percentage over the last seven weeks. During that same period, the iShares Expanded Tech-Software Sector ETF (IGV), which tracks an index of 106 North American software stocks including Palo Alto Networks, Microsoft, and Palantir Technologies, is up by a double-digit percentage. One possible explanation is that investors are shifting attention to companies that will use AI to make money, rather than those making the hardware to run AI apps. Another is valuation: Intel now trades at 79 times forward earnings after its shares soared more than 170% year to date. Meanwhile, many software-as-a-service (SaaS) stocks were sold off earlier this year on fears that AI would disrupt their business models, making them look cheap historically.