The chart details the weekly price returns on the Tech Check mix of single names and ETFs vs. broad market benchmarks. The balanced score of 16-16 for the second straight week shows a more diverse mix of semiconductor and software names in the top and bottom quartile relative to last week.
That commingling of the semiconductor and software names across the rankings is also evident in the 1-month return mix. The 1-month timeline for the Tech Check list posted a stronger score at 21-11 and featured some major semi names in the bottom quartile (Applied Materials, Broadcom) and some bellwether software operators in the top quartile (Salesforce, ServiceNow). We will post the more diverse timeline returns later. The market is still wrestling with how to price AI displacement risk for software and SaaS operators.
The past week saw FactSet (FDS) shoot to the top as investors hunt for value and overreaction in the SaaS space. Palantir (PLTR) and the Software ETF (IGV) made the top quartile along with semi bellwethers Advanced Micro (AMD), Intel (INTC), and Micron (MU). The Semiconductor ETF (SOXX) was in the 2nd quartile at 2 points behind IGV.
The bottom quartile is a mixed bag with SaaS operator Intuit (INTU) dead last and longtime bellwether IBM just ahead of it. On a YTD basis, INTU is also last in the rankings with IBM a few notches above it. INTU was also 2nd to last for 1-month at -13.4%. Salesforce (CRM) is 4 off the bottom this week while it also still resides in the bottom tier YTD at -10.1%.
Applied Materials (AMAT) as a semiconductor capex play was in the bottom quartile this week and the same for the trailing 1-month period where AMAT is in last place at -13.6% joined by Broadcom (AVGO) in the bottom 3 at -5.9%. On a YTD basis, AMAT remains in the top quartile for the Tech Check mix, so the reevaluation of the Semiconductor Supercycle and valuation parameters are getting gut-checked in the market in recent weeks.
The Mag 7 had a mixed week with 4 positive and 3 negative. We see 2 in the top quartile (GOOGL, META), 2 in the 2nd quartile (NVDA, AAPL), and 3 in the 3rd quartile (TSLA, MSFT, AMZN). That beats the YTD rankings that shows no Mag 7 name in the top quartile, 3 in the 2nd quartile (AAPL, NVDA, GOOGL), 3 in the 3rd quartile (AMZN, MSFT, META), and 1 in the bottom quartile (TSLA).