Jan. 15 at 8:48 PM
Software stocks have fallen sharply over the past year amid fears AI could disrupt the sector. Salesforce has dropped 26%, ServiceNow 37%, Adobe 29%, and Monday. com 43%. The launch of Anthropic’s AI agent Cowork, which helps organize desktop files, added to concerns.
William Blair analyst Arjun Bhatia says the selloff “seems overdone” and fears of broad disruption are overstated. AI tools like Cowork and ChatGPT improve productivity but are unlikely to replace entrenched enterprise software systems.
Stocks could recover if companies develop their own AI products or if AI infrastructure spending slows, redirecting investment back to software. Investors are currently favoring semiconductor, energy, and networking firms benefiting from AI, but a shift could boost software shares.
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