Software sector is ‘structurally in trouble’ – Trivariate Research’s Adam Parker

Adam Parker of Trivariate Research warns that the software sector is "structurally in trouble" despite an ongoing tech rally, arguing semiconductors have lower obsolescence risk and more sustainable earnings. He told CNBC that AI does not appear to be in a bubble and that strong earnings from memory-chip companies and names like NVIDIA help justify current valuations. Market impact: Parker’s view implies potential investor rotation away from software-focused ETFs and holdings toward semiconductor and memory-chip exposure, which could pressure software-sector ETFs while supporting chip stocks and broader tech indices. The stance is a cautionary signal for portfolios overweight software, while favoring cyclical hardware and semiconductor beneficiaries.