Aug 27, 2026 · 27 min
Software stocks broaden Nasdaq’s rally beyond chips
Tech Earnings Fuel Bullish Gain For Nasdaq: JFrog, Twilio, Microsoft In Focus
The episode tests whether improving software leadership can sustain the market advance after NVIDIA’s earnings or merely precedes another bout of volatility.
- 1Software breadth improved as money rotated from chip stocks into stronger cybersecurity and enterprise-software names.
- 2JFrog and Twilio showed distinct technical strength, while Microsoft’s Azure growth reinforced software’s role as a market catalyst.
- 3Mixed after-hours reactions leave the rally dependent on orderly consolidation or stronger follow-through near key technical levels.
Don't miss
The clearest turning point is the contrast between JFrog’s breakout and the broader software group’s mixed after-hours earnings reactions.
The brief
Alissa Coram and Ken Shreve assess a tech-led Nasdaq advance following NVIDIA’s earnings, asking whether improving breadth can overcome September volatility and recent index consolidation.
Software emerges as the episode’s central shift: the IGV ETF strengthens as chip stocks weaken, while cybersecurity leadership improves after CrowdStrike and Okta earnings.
JFrog breaks out from a cup-with-handle base and Twilio reclaims its buy zone, giving the hosts two concrete examples of enterprise software participation.
Microsoft supplies the mega-cap confirmation, with accelerating Azure growth and Copilot-related AI monetization helping push the stock toward another breakout.
After-hours declines across several software and cybersecurity names, plus Marvell’s muted reaction, sharpen the question of whether weakness is normal volatility or failed follow-through.
The market outlook comes down to the next technical evidence: stronger continuation would validate the rally, while orderly consolidation could still preserve its structure.
What was said on this episode
12 statements · 10 positive · 1 negative · 1 neutral
Nasdaq could make a clear run toward 27,000.
“the way it looks now, it seems like it could be, you know, a clear run towards that 27,000 level.”
Listen at 3:02
Active investors should consider adding portfolio exposure.
“it seems like an ideal time for active investors to be adding exposure to their portfolios.”
Listen at 4:11
NVIDIA had a strong trading day after earnings.
“a great day for NVIDIA”
Listen at 5:17
Capital rotation into software stocks began several weeks earlier.
“the rotation started in these software stocks”
Listen at 10:05
JFrog has a consistently strong earnings track record.
“JFrog is very interesting because, again, just sort of like Atlassian, very, very consistent track record of earnings.”
Listen at 12:13
JFrog is a longtime enterprise-software group leader.
“kind of a longtime leader in the enterprise software group”
Listen at 13:23
Twilio has demonstrated steady annual earnings growth.
“Twilio, you can look. Look in the annual earnings, just very, very steady growth here as well.”
Listen at 14:51
Twilio is one of many solid enterprise-software stocks.
“I just think this is, One of many really, really solid names in the group here.”
Listen at 15:46
Microsoft could attempt another breakout.
“could try to break out again here.”
Listen at 18:48
Microsoft could pause after its recent run.
“it could just kind of, you know, buy time here and maybe pause and take a little breather.”
Listen at 18:55
Rubrik and SentinelOne are second- or third-tier cybersecurity stocks.
“these are kind of the second, maybe third tier stocks in the group here.”
Listen at 24:28
A modest, low-volume market decline would not be harmful.
“if we, you know, just get, you know, just kind of tight, tight action and maybe just a modest low volume decline, that's not a bad thing either.”
Listen at 25:08
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.