Software has been increasing their capex significantly and it has led to semis pumping. However, soon enough, software will have to reduce their spending to protect their margins and they will focus on optimisation. As a result, I think that as soon as there is an announcement of a reduction in capex for software, semis will start to dump and software stocks will start to pump as they will have yoy revenue growth and better margins. This will lead to the money rotation out of semis and into software
I am betting heavily on Servicenow, NOW and not MSFT or PLTR.
By the law of large numbers, MSFT can grow but not as aggresively as NOW.
PLTR has very high valuations right now so I will not invest in it due to the stock having a very high risk profile.
Out of the 3, I think NOW has the best risk adjusted returns.
TLDR: Soon enough, I think capex reduction -> Semis dump, software pump.