Software stocks are the next wave of rotation

The truth about SaaS being misjudged - who was wrongly killed, and who is truly dead?
Atlassian #TEAM: The strongest proof of misjudgment
Q3 FY2026: Good data, down 45% since the beginning of the year, then a single-day +29.76%
This is the live example Meng Gong mentioned, where it was crushed early on, and now it’s not as bad as it seemed.
The combination of Atlassian’s Work Graph + AI makes it the infrastructure foundation for Agentic AI workflows, rather than being replaced by AI.
Cloudflare $NET : One of Meng Gong’s top picks
On April 20, Cloudflare announced the full set of Agentic Cloud infrastructure during “Agents Week”: Workers VPC, Cloudflare Mesh (private network access for AI Agents), security layers all updated. This isn’t competing with AI, but building the infrastructure layer for AI Agents — the stronger the AI, the more Agents there are, and the more revenue NET earns. The logic is completely consistent with previous analysis, and there are already concrete product implementations.
Salesforce $CRM : Agentforce turns story into digital
Q4 FY2026: Agentforce ARR $800 million, +169% YoY; 29,000 transactions accumulated, over 75% of the top 100 transactions include both Agentforce + Data 360. The latest report in April: Salesforce used AI Agents to handle 3 million customer interactions, saving $100 million in support costs, and then used the same capabilities to develop new business, generating 3,200 new opportunities. From cost savings to revenue creation, this is the key turning point for valuation re-pricing.
Meng Gong says CRM valuation is neutral, not disastrous; founders are capable of making big changes — now the numbers have proven it’s not just big changes, but real revenue is running.
Palantir $PLTR: One of Meng Gong’s top three picks, data no longer needs elaboration.
Operations
Overheated CPU/semiconductor sentiment → signs of stagnation/reversal with black K
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Reduce positions in AMD/ARM/INTC
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Observe if NET/CRWD/PLTR start to show relative strength
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After confirmation, follow into the software sector
Trigger point: CPU sector shows a decline in new highs for two consecutive weeks
Confirmation point: IGV (software ETF) begins to turn positive relative to SMH (semiconductor ETF)
Best timing: During the next systemic market correction, when both hardware and software are being sold off, NET and CRWD are more worth prioritizing than CPU stocks.
Meng Gong said that when stocks rise to the point where everyone believes they won’t fall, a breakout rally may occur.
Corresponding quantitative observation indicators:
NASDAQ retail investor bullish ratio breaks historical high
VIX stays below 14-15 for more than 4 weeks
CPU-related sectors (AMD/ARM/INTC) have no new catalysts for three consecutive weeks but remain at high levels