Why BofA says it's the software sector's 'time to shine'

Getty Images; Jenny Chang-Rodriguez/BI

• Bank of America says software stocks are set for a breakout moment.
• The analysts point to a rising potential for agentic AI, continued cloud migration, and normalizing IT spending.
• They name three top stocks in the sector, each with over 20% upside.

Software stocks are about to have a breakout moment, according to Bank of America analysts.

They say that while the sector is by no means cheap after rallying 59% in 2023 and 23% last year...