The North American Tech-Software iShares ETF (IGV) has seen a significant drop in early 2026 due to investor demand for proof of artificial intelligence (AI) integration in the software sector. Microsoft (MSFT) reported a record $81 billion quarter, but saw a 10% stock drop due to a slight deceleration in Azure’s cloud growth. Software providers are facing challenges as the cost of delivering AI features eats into their profitability, leading some companies to pivot to usage-based pricing models. The fund’s price action has turned bearish, with momentum indicators signaling a potential bounce but a strong downtrend overall.

Read more at Barchart: What’s Behind the Recent Slump in Software Stocks?