Investors Snub the Software Dip, Brace for Deeper AI Disruption

Investors are avoiding beaten-down software stocks, warning that the brutal selloff triggered by fears of displacement by artificial intelligence is likely only just beginning.

What’s quickly become known as the AI scare trade has ravaged major software names in the US and Europe in recent weeks. Fund managers at the likes of Amundi SA and Lazard Freres Gestion said it’s not yet time to venture back into the sector.