Afternoon update
Software and platform names with monetization evidence are rallying on Monday while chipmakers sell off, led by Cerebras's 10.21% drop.
Monday is splitting the AI trade in two. Software and platform names with monetization evidence are rallying, while chipmakers sell off.
- $MANH is up 6.88% to $218.98 after Morgan Stanley upgraded it to Overweight from Equal-Weight with a $250 target, up from $180. The firm cited accelerating cloud bookings, go-to-market changes and early AI-agent traction at a more attractive valuation.
- Meta is up 3.62% to $744.72 on heavy activity, after touching $752.24. Same-day reports put Muse's 7-day retention above 30%, with more than 5 million downloads in 22 days, per Sensor Tower estimates. This is context for the move, and no report confirmed it as the cause.
- Cerebras is down 10.21% to $147.41, after hitting $145.76 (-11.21%), a new 52-week low, and bouncing only slightly. Coverage pointed to an earlier, unconfirmed industry report that OpenAI's GPT-6.1 fast inference tier runs on Nvidia GPUs, plus a share unlock due around October 14. Sam Altman called Cerebras a "close partner" on October 5, but did not address which hardware serves that tier.
- Energy leads the sectors at +1.30%, with the energy ETF up 1.30%. Technology is the weakest sector, down 1.43%, and the semiconductor ETF is off 2.17%, near its session low.
Overall, software and platform names are rising while chips slide. Will evidence of AI monetization keep outweighing pressure on chip sentiment?
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