The artificial intelligence boom is significantly reshaping financial markets, particularly impacting US software stocks. A recent sharp decline in the software and services sector, which underperformed the S&P 500 by almost 24 percentage points in three months, has drawn comparisons to the dot-com crash. This selloff was partly triggered by Anthropic's Claude AI model introducing a new legal tool, prompting investors to question traditional software business models. Major companies like Oracle, Palantir, Workday, Snowflake, MongoDB, Datadog, and Microsoft have experienced substantial losses.
Investors are actively reallocating capital, moving away from general technology investments. Instead, they are favoring chipmakers such as Nvidia, Broadcom, and Super Micro Computer, which directly benefit from AI advancements. Additionally, investor Josh Brown highlights
Key Takeaways
- US software stocks, including Oracle, Palantir, Snowflake, MongoDB, Datadog, and Microsoft, recently dropped significantly, underperforming the S&P 500 by nearly 24 percentage points in three months.
- This market shift is attributed to the AI boom, with Anthropic's Claude AI introducing a new legal tool that challenges traditional software business models.
- Investors are reallocating funds towards chipmakers like Nvidia, Broadcom, and Super Micro Computer, and into "HALO" (Heavy Assets, Low Obsolescence) stocks in sectors like energy and consumer staples.
- Community colleges are becoming crucial for training the AI workforce, with the NAAIC, in partnership with Microsoft and Google, training over 1,900 faculty and reaching more than 50,000 students.
- HitPaw Edimakor is holding a Valentine's Day Sale in 2026, offering up to 50% off AI-powered video editing plans, including a Perpetual Plan with 12,000 AI credits.
- Lean Solutions Group launched new AI features for its LeanTek AgentEdge and LeanTek Connect products at Manifest Vegas 2026, automating logistics tasks with human oversight.
- New Relic developed NOVA, an AI tool built on Amazon Bedrock, which processes over 1,000 daily queries with 80% accuracy to enhance internal engineering productivity.
- AI and robotic systems are revolutionizing heart surgery by creating 3D "digital twins" for planning and providing real-time augmented reality guidance, leading to safer, less invasive procedures.
- The convergence of quantum computing and AI security risks is accelerating, necessitating new solutions like fully homomorphic encryption to protect AI systems and sensitive data.
- Kenyon College is exploring AI's potential to digitize and restore endangered historical archives, such as those at the New Orleans Jazz Museum, using smartphone photography.
AI Fears Hit US Software Stocks Hard
US software stocks recently dropped sharply, causing worries that the AI boom is changing financial markets. This selloff started after Anthropic's Claude AI model introduced a new legal tool, making investors question traditional software business models. Many investors are now shifting their money from tech into sectors like consumer staples, energy, and industrials. The software sector has performed much worse than the S&P 500, a decline not seen since the dot-com crash. Companies such as Oracle, Palantir, and Workday experienced significant losses.
AI Reshapes Markets US Software Stocks Fall
US software stocks recently experienced a significant drop, leading to concerns that the artificial intelligence boom is changing financial markets. This downturn caused the software and services sector to underperform the S&P 500 by almost 24 percentage points in three months, a level not seen since the dot-com crash. While there was a small rebound on Friday, the future for these stocks remains uncertain. Investors are shifting away from technology, with other sectors like energy and consumer staples performing well. The iShares Expanded Tech-Software Sector ETF shows high volatility, indicating traders expect more stock changes.
AI Boom Shifts Focus Away From Software Stocks
US software and services stocks recently plunged, raising fears that the artificial intelligence boom is changing market dynamics. The S&P 500's software and services index dropped about 10% from its peak in late March. This decline happened as chipmakers like Nvidia, Broadcom, and Super Micro Computer, who benefit directly from AI, saw their stocks surge. Experts like Quincy Krosby and Matt Maley note that investors are now rewarding companies clearly positioned for AI, while punishing those with slowing growth or high competition. The market is becoming more selective, seeking clear paths to profitability beyond just general tech investments.
AI Tools Cause Global Software Stock Drop
The software and services industry recently saw a sharp decline in stock prices worldwide. This fall has raised concerns that the rapid growth of artificial intelligence is changing financial markets in unexpected ways. Investors are now questioning if a shift away from technology stocks signals future problems for the AI industry. Fast-advancing AI tools are causing worries that they could disrupt the entire software industry.
AI Disrupts Software Stocks Market Shifts
US software stocks recently experienced a significant drop, sparking fears that the artificial intelligence boom is reshaping financial markets. This selloff, partly triggered by a new legal tool from Anthropic's Claude AI, has led investors to question traditional software business models. The software sector has lagged the S&P 500 by almost 24 percentage points in three months, a decline comparable to the dot-com crash. Many major software companies, including Snowflake, MongoDB, Datadog, Microsoft, and Oracle, suffered substantial losses. This shift sees investors moving towards sectors like energy and consumer staples, while the overall tech sector struggles.
Edimakor Offers AI Video Tools for Valentine's Day
HitPaw Edimakor is hosting a special Valentine's Day Sale in 2026, offering up to 50% off its popular plans and exciting bonuses. This event encourages creators and couples to use AI and technology to tell their love stories. Deals include a Perpetual Plan with 40% off and 12,000 AI credits, and an Annual Plan with 50% off for two computers and 3,000 AI credits yearly. Customers can also get discounts on AI credit packages. Additionally, participants can earn free AI credits by playing a "Love Test" game or sharing a Valentine's video with #EdimakorValentines.
Edimakor Valentine's Sale Features AI Video Creation
HitPaw Edimakor is holding a Valentine's Day Sale in 2026, offering up to 50% off its popular plans and exciting bonuses. This sale helps creators and couples use AI-powered video tools to make romantic video messages and memories. Special offers include a Perpetual Plan at 40% off with 12,000 lifetime AI credits, and an Annual Plan at 50% off for two computers with 3,000 AI credits per year. Customers can also get discounts on AI credit packages. Fun activities like a "Love Test" game and a social sharing challenge with #EdimakorValentines offer free AI credits.
Community Colleges Can Train America's AI Workforce
Antonio Delgado believes community colleges are perfectly suited to train the future AI workforce. The rise of AI will create many high-paying jobs such as machine learning specialists and AI risk managers, forming a "missing middle" that applies AI to real-world issues. Community colleges are already adapting their programs to meet local workforce needs and are integrating AI into their courses. The National AI Artificial Intelligence Community College Consortium, or NAAIC, has trained over 1,900 faculty across 337 colleges, reaching more than 50,000 students in just one year. NAAIC partners with major tech companies like Microsoft and Google to ensure training matches industry demands.
Lean Solutions Group Unveils New AI Tools at Manifest Vegas
Lean Solutions Group, or LSG, launched new AI features for its LeanTek AgentEdge and LeanTek Connect products at Manifest Vegas 2026. These updates allow AI to perform real operational tasks in logistics and business, always with expert human oversight. LSG's "expert-in-the-loop" method ensures AI enhances human work, rather than replacing it. LeanTek Connect helps teams make better decisions, while LeanTek AgentEdge automates complex logistics tasks securely. New features for AgentEdge include automated load building, dispatching, quoting, and proof-of-delivery document verification.
New Relic Boosts Productivity with AWS Generative AI
New Relic developed an innovative AI tool called New Relic NOVA, or New Relic Omnipresence Virtual Assistant, using Amazon Web Services. NOVA helps New Relic engineers quickly find information and automate complex tasks, solving the problem of searching through scattered documentation. Built on Amazon Bedrock, NOVA processes over 1,000 daily queries with 80% accuracy. It seamlessly integrates with platforms like Confluence, GitHub, Salesforce, and Slack. This AI solution improves productivity by handling tasks such as team permission requests and rate limit management, while maintaining data security and scalability.
Josh Brown Recommends HALO Stocks Immune to AI
Investor Josh Brown introduces "HALO" stocks, which stand for Heavy Assets, Low Obsolescence, as a key investment theme for 2026. These are companies that artificial intelligence cannot disrupt and may even make more profitable. This idea comes after a new AI tool from Anthropic caused a significant drop in software stocks, while other sectors remained strong. Investors are now selling software companies and buying into "HALO" sectors like energy, materials, food, and drink, as AI cannot produce these physical goods. Brown suggests caution, noting that some of these stocks have rallied based on optimism rather than actual earnings improvements.
AI and Robots Make Heart Surgery Smarter
Artificial intelligence and robotic systems are revolutionizing heart surgery, making procedures safer, less invasive, and more precise. This advancement leads to shorter hospital stays, less pain, and quicker recovery for patients. Dr. Makoto Hashimoto, a cardiac surgeon at Baptist Health Miami Cardiac & Vascular Institute, explains that AI helps with detailed planning before surgery. It creates 3D "digital twins" of a patient's heart from CT scans, allowing surgeons to practice and anticipate challenges. Robotic systems like the da Vinci robot provide surgeons with enhanced control and visualization. Newer systems also offer real-time "augmented reality" guidance during operations, further improving safety.
Quantum and AI Security Risks Are Converging
Security risks from quantum computing and artificial intelligence are merging more quickly than businesses anticipate. Companies now face immediate dangers from AI systems that handle sensitive information, models, and training data. Traditional security methods, which protect data at rest or in transit, do not cover data while it is being used. New threats include prompt leakage, model extraction, and training data inversion. However, advanced solutions like fully homomorphic encryption and secure enclaves are making secure AI execution possible. This shift means security is moving towards integrated platforms, such as 01Quantum's Quantum AI Wrapper, to protect AI systems and prepare for future quantum threats.
Marketers Use AI and Data for Smarter Spending
In the first quarter, marketers are changing their spending strategies to focus on areas supported by artificial intelligence and clear measurement. They are prioritizing investments where data indicates the highest potential for performance, while also working to create demand. Major advertisers like P&G are emphasizing advertising effectiveness. While overall budgets remain steady, there is a noticeable shift towards "bottom of the funnel" spending and away from traditional platforms like Meta and Google. Marketers are now investing more in tools for incrementality testing, media mix modeling, and customer relationship management to ensure accountability and a strong return on investment.
Kenyon College Uses AI to Save Old Archives
A team of students and faculty at Kenyon College is working to see if artificial intelligence can save endangered historical archives. Many old documents, like those at the New Orleans Jazz Museum, are crumbling and disappearing. Led by Professor Katharine Elkins and instructor Jon Chun, the group plans to create a handheld AI tool over 18 months. This tool will digitize and restore fragile artifacts using just a smartphone photo. They are testing it with complex New Orleans jazz history, including items in different languages. The project also aims to help AI find connections across various archives, with human experts checking the AI's accuracy.
Sources
- U.S. software stocks tumble sparks concerns that AI trade is reshaping markets
- US software stocks tumble sparks concerns that AI trade is reshaping markets
- US software stocks tumble sparks concerns that AI trade is reshaping markets
- US software stocks tumble sparks concerns that AI trade is reshaping markets
- US software stocks tumble sparks concerns that AI trade is reshaping markets By Reuters
- Edimakor Valentine’s Day Sale 2026: Express Your Love with AI, Up To 50% OFF
- Edimakor Valentine's Day Sale 2026: Express Your Love with AI, Up To 50% OFF
- OPINION: Community colleges are uniquely positioned to train the nation’s AI workforce
- Lean Solutions Group Launches New AI Features for its LeanTek AgentEdge and LeanTek Connect Products at Manifest Vegas 2026
- New Relic transforms productivity with generative AI on AWS
- Josh Brown's 'HALO' stocks: They can't be disrupted by AI and will get more profitable because of it
- Rise of AI in Heart Care: How Robotic & Minimally Invasive Surgery is Getting Smarter
- From Quantum Threat to AI Exposure: Why Security Is Converging Faster Than Enterprises Expect
- In Q1, marketers pivot to spending backed by AI and measurement
- Could artificial intelligence save endangered archives? A Kenyon College cohort aims to find out
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