Barclays: Significant differentiation within the software sector

The report analyzes the significant divergence in the U.S. software industry under the AI-driven landscape. AI infrastructure software leads in both growth and profitability, while traditional application software focuses more on efficiency optimization. Using indicators such as the "Rule of 40," the research reveals that mature sectors—such as design, large-scale enterprise software, and human resources software—have developed different trajectories from the high-growth AI sectors due to their scale effects and profitability advantages. Source: Barclays, U.S. Software — Raimo's Roundup: Mapping Software's Growth-Profitability Spectrum Across Sub-Sectors