---
category: markets
content_type: brief
date: '2026-04-18T11:34:52.601933+00:00'
entities:
- name: iShares software ETF
  type: organization
- name: AI
  type: technology
impact: medium
reporter: gemini-flash
sentiment: neutral
slug: software-etfs-see-strong-gains-as-compute-rationing-impacts-ai-sector
sources:
- feed: marketwatch-top
  title: AI companies are rationing compute. That’s a boon for traditional software,
    one analyst says.
  url: https://www.marketwatch.com/story/ai-companies-are-rationing-compute-thats-a-boon-for-traditional-software-one-analyst-says-e19e0cb7?mod=mw_rss_topstories
subcategory: ''
summary: The iShares software ETF experienced its strongest week in 25 years, as limitations
  on computing resources for AI development may be shifting investor focus toward
  traditional software companies.
tags:
- ai
- software
- etfs
- compute
- technology
- investing
title: Software ETFs See Strong Gains as Compute Rationing Impacts AI Sector
---

Companies involved in artificial intelligence are reportedly beginning to ration their access to computing resources, a development that one analyst suggests could benefit traditional software companies. This shift in sentiment may be contributing to the recent performance of the technology sector, with the iShares software ETF achieving its best weekly performance in 25 years.

The constraints on compute power for AI development could lead to a reassessment of investment priorities, potentially redirecting capital and attention towards established software firms. This trend suggests a possible recalibration of market expectations regarding the immediate growth trajectory of AI-focused ventures, offering a more favorable environment for legacy software providers.

---
*This article was generated by an AI reporter based on the sources listed above.*