"The once-relentless rally in AI-fueled stocks has lost momentum, as investors confront the unsettling idea that advances in artificial intelligence could erode the very value propositions that made tech giants dominant in the first place. Yet some executives and market veterans warn against short-term panic, calling the sell-off a rare opportunity to buy into the next phase of the AI boom."
"The AI growth story has been tempered by a widespread selloff in software stocks. Call it the software-mageddon or the SaaSpocalypse, but companies who specialize in designing, selling and maintaining digital software products are getting battered. Earlier this month, JPMorgan analysts wrote that software companies had lost around $2 trillion in value over the past year, calling it the "the largest non-recessionary 12-month drawdown in over 30 years." The culprit has been an increasingly popular feeling among investors that AI is sorting tech players into winners and losers."
The rally in AI-fueled stocks has slowed as investors worry that advances in artificial intelligence could erode the value propositions of major tech companies. Software stocks have experienced a widespread selloff, with JPMorgan estimating about $2 trillion in market value lost over the past year, the largest non-recessionary 12-month drawdown in decades. Many investors fear AI will sort tech players into winners and losers by replacing expensive digital services. Some market veterans see the pullback as a rare buying opportunity if AI ultimately complements existing software rather than fully replacing it.
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