Wall Street Says Software’s AI Stock Market Wipeout Went Too Far

Market pros increasingly think the punishment of software stocks over the past few weeks went too far, creating new bargains in shares that were beaten down in an indiscriminate selloff.

Strategists at JPMorgan Chase & Co. see potential for a software rebound based on the “overly bearish outlook on AI disruption and solid fundamentals,” they wrote in a note to clients Tuesday. Meanwhile, Goldman Sachs Group Inc. Chief Executive Officer David Solomon said Tuesday that he thinks the selloff was “too broad.”