software

JPMorgan

2026-09-30 03:30:59

JPMorgan says tech valuation reset is largely done, favors semiconductors over software

JPMorgan said in a Sept. 28 equity strategy report that the valuation reset across much of the technology sector has already gone a long way, leaving positioning cleaner while earnings momentum and the capital spending cycle remain intact. The bank said the tech and AI ecosystem had stalled for three months from June through last week, but valuation compression in most areas had become significant enough to justify re-engaging with the sector. The report, summarized by TechFlowPost and attributed to analyst Mislav Matejka, draws a sharp distinction between semiconductors and software. JPMorgan said forward earnings for semiconductors have continued to move about 30% higher, while software has seen almost no earnings upgrades. It therefore recommends re-entering the semiconductors-over-software relative trade. The bank also said the so-called Magnificent 7 now trade at their cheapest valuation level in a decade, nearly one standard deviation below the broader market, while hyperscaler earnings growth should help support performance after an estimated 8% underperformance this year. JPMorgan also argued that the AI capex upcycle remains intact, with hyperscaler capital spending projected to grow at a 28% CAGR through 2030. It added that agentic AI could materially shift infrastructure demand by moving CPU-to-GPU ratios from roughly 1:4 to 1:8 in traditional large language model setups toward 1:1, or even more in favor of CPUs.

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AI

2026-09-28 08:30:00

AI Is Repricing Software: Stale Unicorn Valuations, a Hollowing Middle, and New Rules for Product Defensibility

Venture Curator’s analysis, translated by TechFlow, ties together several shifts now shaping software and startup markets. First, many U.S. unicorns are still carrying private-market valuations set during the 2021–2022 boom, with 537 of 964 active unicorns last priced in those two years. That leaves a large share of the sector marked at figures the market has not recently tested. Second, the AI premium has not disappeared, but investors are no longer rewarding every “AI-native” pitch equally. The spread now depends far more on defensibility: proprietary data, technical differentiation, workflow depth, and whether unit economics still work when inference volume scales. Third, AI may be pushing software toward a barbell structure, where giant platforms and small niche tools thrive while mid-sized point solutions face the most pressure. The piece also argues that seed valuations are often constrained less by founder storytelling than by fund math, including check size, target ownership, and option-pool terms. Finally, in consumer AI, acquisition is not the hardest part. Retention is. RevenueCat data shows AI apps monetize well, but keep users less effectively than non-AI apps over 12 months. The central takeaway is simple: AI can open the door, but long-term value still depends on what a company builds around it.

290

BlackBerry

2026-08-25 09:44:54

BlackBerry CEO says robotics is one of QNX’s fastest-growing businesses

BlackBerry CEO John Giamatteo said the company’s robotics business has become one of the fastest-growing areas for its QNX operating system as BlackBerry expands its software business beyond the automotive sector. The update was carried by Techub News and cited CNBC. Giamatteo’s comment points to a broader push to extend QNX into markets outside cars, with robotics now standing out as a key growth area within that effort. No additional figures or timelines were disclosed in the source brief.

360

Figma

2026-08-10 10:07:52

Figma Shares Fell 17% After Q2 Earnings, but Artemis Says the Market Is Underpricing Its AI and Agent Opportunity

Figma fell 17% after reporting second-quarter 2026 results on Aug. 5, but Artemis Analytics argues the market is still valuing the company too narrowly. The firm points to $370.1 million in revenue, up 48% year over year, a 136% net dollar retention rate, and strong paid-customer growth across higher-ACV cohorts. In its view, Figma is evolving from a design tool into a software layer for creators, product engineers and AI agents. Artemis says that shift could expand the company’s total addressable market well beyond what Wall Street is pricing today. It also argues that AI usage may become a revenue source rather than a pure cost, especially as Figma charges for its AI suite, including Figma Make, Figma Agent, Figma Weave and Figma MCP. The main risk, the note says, is that AI tools from companies such as Claude and OpenAI could one day compress the design-to-code workflow entirely, though Artemis считает that outcome is still far off.

1820

IBM

2026-07-23 00:21:33

IBM posts 1% Q2 revenue growth and cuts full-year outlook after mainframe slump

IBM reported second-quarter results on July 23, with revenue rising just 1% year over year to $17.2 billion and adjusted earnings per share coming in at $2.93, both below expectations. The company also lowered its full-year revenue growth forecast, revising guidance from “more than 5%” to a range of 4% to 5%. A sharp drop in Z series mainframe sales weighed on the quarter, with revenue from that segment falling 42% from a year earlier and dragging infrastructure revenue down 7%. Software was a relative bright spot, posting 5% year-over-year growth. Despite the weaker results and the lower annual outlook, IBM shares rose about 3% in after-hours trading. BlockBeats said the move came after the company had already issued an earnings warning a week earlier, which appears to have tempered the market reaction to the report.

1420

IBM

2026-07-22 21:10:28

IBM cuts full-year sales growth outlook as mainframe revenue drops 42%

IBM lowered its full-year revenue growth forecast to 4% to 5% after reporting second-quarter results on July 22 Eastern Time, citing weaker demand for mainframes and related system software. The company had previously guided for growth above 5%. In the second quarter, IBM posted revenue of $17.2 billion, up about 1% from a year earlier, while mainframe sales in its infrastructure unit fell 42% as the current product cycle neared its end. IBM said enterprise spending is shifting toward AI hardware, adding pressure to its traditional hardware and software businesses. The company is responding with a faster cost-saving plan that includes cutting third-party technology spending, improving supply chain management, and streamlining administrative functions. Chief Financial Officer Jim Kavanaugh said IBM still expects full-year free cash flow to increase by about $1 billion from last year. The report also noted investor attention on whether generative AI tools could disrupt traditional software business models, with recent market discussion around Starbucks potentially replacing IBM software with internally developed tools.

1930

Goldman Sachs

2026-07-11 06:32:13

Goldman Sachs sees IBM as the relative winner in IT services, with EPAM facing heavier pressure

Goldman Sachs said IBM stands out as the relative beneficiary in its July 10 preview of the Americas technology IT services group for 2Q26, while warning that companies with greater exposure to discretionary spending, including EPAM, face a tougher setup. The report covered IBM, Cognizant, EPAM, Globant, and TaskUs. The bank’s central view is that second-quarter results should be broadly in line with expectations, but macro uncertainty that began affecting client decision-making in April and May is now tightening the range of forward guidance. Goldman expects companies across the group to trim the top end of their guidance ranges and anchor investor expectations closer to the midpoint. IBM was the only stock in the group to receive a Buy rating from Goldman, with a $335 price target. The firm pointed to resilience in IBM’s software business and demand tied to enterprise AI. Goldman forecast IBM’s second-quarter software revenue at $8.16 billion and full-year software revenue at $33.2 billion, with total 2026 revenue at $71.3 billion and free cash flow guidance around $16 billion. By contrast, Goldman kept a Neutral rating on EPAM and said its concentration in application implementation and consulting leaves it more exposed to weaker discretionary budgets. The bank expects EPAM to narrow its full-year organic growth guidance to 2.5%-4.0% from 2.5%-5.0%.

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