Software Stocks Have Entered a Bear Market. Is This the End of the AI Trade, or Just the Beginning?

Key finding: software firms with deep proprietary data and strong customer relationships are positioned to thrive, while products that can be automated by AI face elevated risk of disruption. Portfolio implication: favor companies with sticky data assets and customer integration, and reassess exposure to vendors whose core offerings are commoditizable by AI.

Analysis

Key finding: software firms with deep proprietary data and strong customer relationships are positioned to thrive, while products that can be automated by AI face elevated risk of disruption. Portfolio implication: favor companies with sticky data assets and customer integration, and reassess exposure to vendors whose core offerings are commoditizable by AI.