A widely followed market strategist says Retail investors are buying the dip in software stocks at a pace rarely seen before.
In a new post on X, The Kobeissi Letter editor-in-chief Adam Kobeissi tells his 1.3 million X followers that individual investors have poured record sums into the iShares Expanded Tech-Software Sector ETF (IGV), even as the sector reels from a steep pullback.
“Retail investors are buying US tech stocks at an unprecedented pace: retail purchases of the Software ETF, IGV, are up to a record +$176 million over the last month. This is more than DOUBLE the previous peak seen in late 2024 and 12 TIMES higher than at the beginning of 2026. This also marks one of the most aggressive retail buying in technology stocks since the data began.”
The massive influx of capital comes against a backdrop of sharp losses in software names.
“The surge comes as software stocks dropped -33% from their October 2025 peak and posted their worst January since 2008.”
Kobeissi adds that the appetite for big tech extends beyond ETFs.
“Meanwhile, Amazon, AMZN, has overtaken Nvidia, NVDA, as the most purchased US stock by retail investors over the last few sessions following its post-earnings decline. Retail investors are betting heavily on software stocks.”
Amazon (AMZN) is trading at $204.08, down over 20% from its peak of $258.60, which it hit in November. Meanwhile, Nvidia (NVDA) is worth $190.05.
Last week, Amazon revealed that it plans to spend $200 billion this year to fund its massive AI efforts. According to CFO Brian Olsavsky, Amazon Web Services is positioning itself to capture the potential upside coming from the shift to the application layer of AI.
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