Braze leads software sector higher, while chip stocks mostly hold steady

What happened: Salesforce (CRM) agreed to buy Braze (BRZE), an AI-powered marketing platform, for $5.66B in enterprise value. Braze shares rose more than 50% on Tuesday. Key numbers: $5.66B enterprise value. Braze shares up more than 50%. Expected $500M in annual cost savings. Operating margins targeted at 30%-35% within a few years post-acquisition. Why it matters: The deal lifted the software sector, with related software names gaining as investors rotate into software stocks on optimism over earnings and AI partnerships.

Salesforce (CRM) agreed to buy Braze (BRZE), an AI-powered marketing platform, for $5.66B in enterprise value. Braze shares rose more than 50% on Tuesday.

The deal lifted the software sector, with related software names gaining as investors rotate into software stocks on optimism over earnings and AI partnerships.