The Nasdaq is entering a key phase as momentum slows in semiconductor stocks and investors begin to look for value in cheap software stocks. AI demand remains strong but high chip valuations and record leverage have increased the risk of deeper correction in semiconductor stocks. A move into software stocks may help support the Nasdaq. A break above 30,500 could then push the index toward 33,000. Agustina Patti, Financial Markets Strategist at Exness commented that the Nasdaq is entering a phase where market leadership may become more diversified. The stock price of Micron Technology (MU) dropped to $804 in July after marking a peak at $1,255 in June. The PHLX Semiconductor Index also reached a peak of 14,655 in June and initiated a strong drop to mark a low of 11,194.60 in July 2026. The recent rally that began at the end of March 2026 has been driven by AI-related semiconductor demand.