Okta Etc.: Top Tech-Software Survivors Amid AI-Driven Selloff

Following AI model releases, tech-software shares have underperformed the broader Nasdaq by their widest margin this century, with the iShares Expanded Tech-Software ETF (IGV) down sharply while AI hardware and infrastructure names remain near highs. The selloff reflects fear-based narratives, not a fundamental death spiral. Senior Market Strategist John Rowland, CMT, views this as capitulation separating survivors from casualties. Usage of SaaS platforms remains entrenched across healthcare, HR, sales, and engineering; Salesforce (CRM) is a relative standout. AI expands risk, creating demand for identity and security solutions where Okta (OKTA) has posted higher lows. Key differentiators include switching costs, entrenchment, and security relevance. A breakout above the 50-day moving average would signal fading fear and institutional buying. Until then, the environment remains cautious, with opportunities for defined-risk strategies in established demand zones.