The iShares Expanded Tech-Software Sector ETF (IGV), the benchmark tracker for enterprise software names, rallied nearly 42% from its April lows through early June 2026. That recovery came after a brutal start to the year that erased nearly $1 trillion in market value from the sector.
The whiplash year for software
New AI automation tools introduced by Anthropic sent a shockwave through enterprise software, forcing investors to reconsider the pricing power and long-term relevance of traditional SaaS business models. Salesforce shares plummeted roughly 26-30%. Workday dropped about 33%. The collective damage approached $1 trillion in lost market capitalization across the software sector.
ServiceNow posted its highest monthly gain since 2012, surging over 40% in May alone. Nvidia CEO Jensen Huang stated in early June that AI agents would actually increase demand for software platforms, not replace them. The IGV ETF responded accordingly, ripping higher and reclaiming a substantial chunk of its earlier losses.
Momentum hits a wall
