Software Stocks Will Rebound From the Ashes, Malik Says

Summary

Saira Malik discusses the macro backdrop of elevated Treasury yields, structural inflation and a strong economy ahead of the Fed chair's Jackson Hole speech. She argues NVIDIA's results support the AI trade and technology leadership, while software stocks can rebound from AI-driven fears. She also sees high yields supporting fixed income returns and is watching Marvell earnings for evidence the AI trade is broader than NVIDIA.

• Malik expects no big market move from the Fed chair's Jackson Hole speech and sees no rate cuts on the table.
• She views long-term Treasury yields as elevated on strong growth and structural inflation.
• NVIDIA's strong results and raised guidance dismantle the AI bear case and support technology leadership.
• She believes software stocks can rebound from AI fears because fundamentals remain stable and strong.
• She sees the Magnificent Seven and Nasdaq as the main equity beneficiaries of AI earnings.
• She notes high yields still support strong fixed income returns despite tight credit spreads.
• She is watching Marvell earnings for evidence that the AI trade extends beyond NVIDIA.