Decoding The Hardware-Software Performance Dispersion

FTSE Russell1.06K FollowersFollow5ShareSavePlay(17min)CommentsSummaryHardware companies benefit from tangible demand, secured orders, and near-term cash flows, while software faces uncertainty around model economics, disruption risks, and capex payoff.Hardware and Telecom Equipment weights explain why APAC ex Japan ex China and Japan have led global returns, while software-heavy regions, such as the US and China, have lagged.These markets benefit from robust demand for memory chips, advanced semiconductors and precision equipment, essential for AI supply chain and infrastructure. Supatman/iStock via Getty Images By Mark Barnes, PhD, Head of Global Investment Research, Americas, Global Investment Research, FTSE Russell | Indhu Raghavan, CFA, Manager, Global Investment Research, FTSE Russell | Belle Chang, MBA, Senior Manager, Global Investment Research, FTSE RussellThis article was written byFTSE Russell1.06K FollowersFollowFTSE Russell is a leading global provider of index and benchmark solutions, spanning diverse asset classes and investment objectives. As a trusted investment partner we help investors make better-informed investment decisions, manage risk, and seize opportunities.Market participants look to us for our expertise in developing and managing global index solutions across asset classes. Asset owners, asset managers, ETF providers and investment banks choose FTSE Russell solutions to benchmark their investment performance and create investment funds, ETFs, structured products, and index-based derivatives. Our clients use our solutions for asset allocation, investment strategy analysis and risk management, and value us for our robust governance process and operational integrity.For over 40 years we have been at the forefront of driving change for the investor, always innovating to shape the next generation of benchmarks and investment solutions that open up new opportunities for the global investment community.