East Money Securities·2026-02-10 13:30Market Overview - After a significant decline due to concerns over AI replacing software, market sentiment improved this week, with funds beginning to trade oversold conditions. The continued weakening of the dollar also provided additional support for risk assets and gold [1] - The technology sector continued its rebound, with the Nasdaq 100 closing above the critical 100-day moving average. Notably, Oracle surged nearly 10%, and Google announced plans to issue $20 billion in bonds to increase AI spending, reflecting confidence in its long-term competitiveness in the search engine and AI ecosystem [1] Software Sector Analysis - Despite a rebound led by Oracle, the software sector remains below last week's opening highs, indicating that while it may be at a bottom, it has not yet stabilized. The report suggests that internal differentiation within the sector will intensify, and investors should be cautious rather than blindly bottom-fishing [3] - The report highlights that traditional software business models and revenue sources may face significant disruption from generative AI, automation platforms, and alternative tools. Companies with proprietary data and strong AI integration capabilities are likely to benefit [3] Investment Strategy - The market's trading focus shifted from AI builders in the tech sector to value stocks that are short-term beneficiaries of AI, such as DOW, WMT, and FDX, which have seen significant rebounds. The report notes that the most shorted stocks have risen over 11% from last week's lows, indicating a potential clearing of short positions [3] - The adjusted valuations of M7, OpenAI chain, and the software sector provide reasonable entry points for buyers, suggesting a potential return to a risk-on market environment focused on AI and resource hedging [3] Macroeconomic Considerations - The report emphasizes that macroeconomic uncertainties remain high, particularly with the delayed release of January non-farm payroll and the latest CPI data, which could influence market dynamics. Currently, the market appears inclined to maintain a certain level of risk exposure ahead of these data releases [3]