Artificial Intelligence (AI) has gone from turbocharging software to suddenly looking like its executioner, after Anthropic’s automation tools helped trigger a February selloff. That slide was driven by fears that AI assistants could replace whole categories of enterprise applications, pressuring software valuations even as many fundamentals stayed intact.
In that environment, Tom Lee of Fundstrat has argued that the “AI scare trade” in software is in its late stages, with much of the bad news already priced in and sellers largely exhausted, which is why he now frames the sector as a bottoming story rather than the start of another major leg lower.
