MW Adobe's CFO is departing for Marvell. And it's one more reason for investors to choose chips over software.

By Hannah Pedone

The software sector has struggled in recent months amid concern that software companies will struggle to survive in the AI era

Shares of Adobe were down 8% on Friday, amid wider software-sector malaise.

A prominent software executive is jumping to the chips sector, a move that could give investors more reason to do the same.

Adobe $(ADBE)$ announced Thursday that its chief financial officer, Dan Durn, will step down. The same day, Marvell Technology $(MRVL)$ said Durn will take over as its CFO Monday.

The announcement comes a few months after Adobe's CEO, Shantanu Narayen, said he plans to leave his role. The tumult in the top ranks of the company comes amid investor concern that Adobe isn't prepared to compete or even survive in the AI era. Shares of Adobe, which reported earnings Thursday, were down 8% on Friday.

Meanwhile, investors have been bullish on the chip sector over the past several months, given its crucial role in powering the AI revolution.

As of Friday, the iShares Semiconductor ETF $(SOXX)$, a proxy for chip stocks, is up 99.7% so far this year, while the iShares Expanded Tech-Software Sector ETF $(IGV)$, a software-stocks proxy, is down 14.3%, according to Dow Jones Market Data.

"Some investors may be concluding that Mr. Durn's departure for a semi company is an indication of that sector having a greater opportunity," D.A. Davidson analyst Gil Luria told MarketWatch.

"There is a sense that it will be hard for many software companies to show accelerating growth in this environment much like Adobe is struggling with right now," Luria added.

Read more: Adobe is losing another top executive, and investors don't like it

Marvell, on the other hand, is up 312% in the past year, and Durn's decision to join the company suggests, "problems may be deeper at Adobe," Jefferies analyst Brent Thill wrote in a Thursday note. Adobe's stock is down 51% in the past year.

The move brings into question the company's ability to attract and retain senior executives, Thill said, adding that the timeline for Adobe's search for a CEO to replace Narayen "does not appear immediate." The company has said Narayen will remain in the role until Adobe finds a successor.

Several software stocks edged down on Friday amid a broad market advance SPX, a sign of broader challenges for the sector. Shares of Rubrik $(RBRK)$, Circle Internet Group (CRCL) and NextNav $(NN)$ were all down between 3% and 4%. The iShares Expanded Tech-Software Sector ETF (IGV) was down 1%, Salesforce's (CRM) stock was down 1% and Oracle's $(ORCL)$ was down 2%. Shares of Marvell (MRVL) were up 2% near the close of the Friday session.

See also: Gwynne Shotwell is the 'unsung hero' of SpaceX as its blockbuster IPO launches

-Hannah Pedone

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 12, 2026 15:51 ET (19:51 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.