Investors are shifting focus from fleeting sentiment to solid fundamentals, says Pooja Malik, CIO of Nipun Capital. The move signals a broader recalibration in portfolio construction amid volatile markets. Analysts note that this trend could reshape asset allocation across tech and non‑tech sectors.

The distinction Malik draws between hardware supply chains and software underscores a sectoral divide. While chip shortages and logistics hiccups strain manufacturers, software firms enjoy steady demand and higher margins. Investors now weigh supply resilience against revenue stability when sizing positions.

This shift carries market implications. Companies with robust supply chains may command premium valuations, while those exposed to bottlenecks face downward pressure. Fund managers are recalibrating risk models, and corporate boards are prioritizing supply‑chain transparency to attract long‑term capital. Such dynamics could influence IPO timing and M&A activity.

Investors watching this trend should monitor supply‑chain metrics, earnings guidance, and regulatory updates on chip manufacturing. Analysts predict that firms that adapt quickly will outperform peers, while laggards risk erosion of market share and valuation. This focus may also reshape sector rotation strategies for institutional investors.