$SAP AG-Sponsored(SAP.US) rose nearly seven points, with BMO raising its target price as the direct trigger; $Figma(FIG.US), $Salesforce(CRM.US), and $Adobe(ADBE.US) also saw gains of five to nine percent, with the enterprise software sector being repriced as a whole.

The logic is not complex: when doubts about AI capital expenditures are concentrated on the hardware side, money needs to find a destination that is also involved in AI but does not rely on continued acceleration of capex. The AI revenue for software companies is an increment added to existing subscriptions, without needing to build data centers first.

$Figma(FIG.US) has greater volatility, as new stocks naturally have lighter float. How far this rotation can go depends on whether the financial reports of the next batch of software companies can provide verifiable numbers for AI ARR, rather than continuing to talk about penetration rates.