Workday's stock recently dropped to a five-year low, with shares falling over nine percent in after-hours trading following a weaker-than-expected sales forecast. The HR and payroll software company faces significant investor anxiety regarding AI disruption, contributing to a roughly 40% year-to-date loss. CEO Aneel Bhusri attempted to reassure the market by highlighting Workday's AI investments and noting that major AI companies like Anthropic, Google, and OpenAI utilize Workday's systems. Despite his optimism about the company's 20 years of experience providing an edge, analysts have lowered price targets due to slower deal closures.
In contrast to Workday's struggles, companies powering the AI infrastructure continue to attract strong interest. Super Micro Computer, a key provider of high-performance servers for AI data centers, sees institutional investors increasing their stakes, confident in its role for training and running AI models. CoreWeave, an AI infrastructure firm, has seen its stock surge 123% since its IPO, boasting a nearly $56 billion revenue backlog with major clients such as Meta Platforms and OpenAI. Advanced Micro Devices (AMD) is also poised for gains, benefiting from a shift towards AI inference, securing a significant deal with Meta for large-scale AI infrastructure.
SoundHound AI, specializing in sound-related AI services for applications like automated drive-thrus, presents a potential buying opportunity despite its 26% year-to-date stock drop in 2026. The company holds 220 patents and serves major brands, making it an attractive acquisition target with a $3.3 billion market cap. Meanwhile, Anthropic's Claude AI chatbot experienced a brief outage affecting thousands of users, with issues reported for Claude Chat, Claude Code, and the Claude app, though a fix was deployed. Globally, some investors are seeking refuge from AI market volatility by turning to Australian bonds, which saw A$4 billion in inflows last year.
The AI market also faces monetization challenges, particularly in India, which became the world's largest market for generative AI app downloads with a 207% jump in 2025. Despite driving 20% of global GenAI app downloads, India accounts for only 1% of revenue, leading companies like Perplexity and ChatGPT to end free promotions and focus on paid subscriptions. Similarly, Tata Consultancy Services (TCS) is encouraging employees to use AI tools for efficiency, even if it means a short-term revenue decrease, believing AI will create more opportunities. Investors are also closely watching Nvidia's upcoming earnings report for insights into the AI market's health, as Big Tech's capital expenditures heavily involve Nvidia's Blackwell chips.
Key Takeaways
- Workday's stock dropped significantly (over 40% YTD, 50% over past year) due to a weak sales forecast and investor fears about AI disruption.
- Workday CEO Aneel Bhusri stated that major AI companies like Anthropic, Google, and OpenAI use Workday's systems.
- SoundHound AI's stock fell 26% YTD in 2026 but is seen as a potential acquisition target due to its 220 patents and focus on sound-related AI services.
- Institutional investors are increasing stakes in Super Micro Computer, a key provider of high-performance servers for AI data centers.
- CoreWeave, an AI infrastructure company, saw its stock soar 123% since IPO and has a nearly $56 billion revenue backlog with clients like Meta Platforms and OpenAI.
- AMD secured a significant deal with Meta, validating its hardware for large-scale AI infrastructure, benefiting from the shift towards AI inference.
- Anthropic's Claude AI chatbot experienced a brief outage affecting thousands of users, with a fix deployed.
- Global investors are turning to Australian bonds for safety, with A$4 billion in inflows, amidst concerns about AI market volatility.
- India is the largest market for generative AI app downloads (207% jump in 2025), but companies are shifting to paid subscriptions as it accounts for only 1% of global GenAI revenue.
- Tata Consultancy Services (TCS) encourages AI tool use for efficiency, accepting potential short-term revenue impact, while Nvidia's earnings are anticipated to calm AI market fears.
Workday shares hit 5-year low amid AI disruption fears
Workday's stock dropped to its lowest point in over five years due to concerns about artificial intelligence. The HR and payroll software company issued a weak sales forecast, worrying investors about its ability to compete with AI tools. CEO Aneel Bhusri stated that major AI companies like Anthropic, Google, and OpenAI use Workday, emphasizing the complexity of its systems. Despite these assurances, many analysts lowered their price targets, citing slower deal closures and general investor anxiety about AI's impact on software demand.
Workday stock plummets on weak sales outlook and AI concerns
Workday's stock experienced a significant drop after the company released a soft sales forecast, raising investor concerns about its competitiveness in the age of AI. The shares fell 8.3% in early trading, adding to a year-to-date loss of about 40%. This decline places Workday among the worst-performing U.S. software stocks this year. CEO Aneel Bhusri tried to ease worries by highlighting investments in AI and noting that major AI firms use Workday, but analysts remain cautious.
Workday CEO's AI optimism fails to lift stock after weak forecast
Workday CEO Aneel Bhusri expressed optimism about the company's AI advancements and the strength of its core HR and financial applications during the fourth-quarter earnings call. However, this sentiment did not prevent the stock from falling more than nine percent in after-hours trading following a weaker-than-expected sales forecast. The stock has already seen a 50 percent drop over the past year due to fears of AI disruption. Bhusri believes Workday's 20 years of experience gives it an edge in AI, but the company plans to continue innovating.
SoundHound AI stock could soar in 2026, analysts predict
SoundHound AI's stock has fallen 26% year-to-date in 2026, presenting a potential buying opportunity for investors interested in AI stocks. Despite competition from larger tech firms, SoundHound's focus on AI services for sound-related applications, like automated drive-thrus and customer service, has attracted major brands. The company holds 220 patents and has a large addressable market, making it an attractive acquisition target in a consolidating AI industry. Analysts believe its existing customer relationships and intellectual property add significant value.
SoundHound AI stock poised for growth in 2026
SoundHound AI's stock is down 26% in 2026, but this presents a chance for investors to buy into a company in the rapidly growing AI sector. SoundHound develops AI services for applications involving sound, used by major companies in automotive and retail. With a market cap of $3.3 billion, it's a smaller player but holds significant potential, including 220 patents. Analysts suggest SoundHound could be a prime acquisition target due to its established customer base and technology, especially as the AI industry consolidates.
Big money managers are buying Super Micro Computer stock
Institutional investors are quietly increasing their stakes in Super Micro Computer (SMCI), a key provider of high-performance servers for AI data centers. Despite its stock volatility, large hedge funds and mutual funds see long-term value in the company. Super Micro Computer's hardware is essential for training and running AI models, a market experiencing rapid growth. This sustained institutional interest suggests confidence in the company's ability to benefit from the ongoing AI revolution and its role in powering future computing.
CoreWeave AI stock is a buy after 123% IPO surge
CoreWeave, an AI infrastructure company, has seen its stock soar 123% since its IPO last year, despite recent volatility. The company operates in a market with high demand for AI data centers and is significantly expanding its capacity. CoreWeave has a substantial revenue backlog of nearly $56 billion, driven by major clients like Meta Platforms and OpenAI. This backlog suggests strong future growth potential, likely exceeding analyst expectations and positioning the company for continued success.
AMD stock poised for gains amid AI shift to inference
Advanced Micro Devices (AMD) is benefiting from a structural shift in AI towards inference, the continuous computation needed for autonomous systems. The company recently secured a significant deal with Meta, validating its hardware for large-scale AI infrastructure. While many forecasts still focus on AI training, inference demand is expected to grow exponentially, creating a long-term opportunity for AMD. The stock is showing renewed upside momentum, with analysts projecting strong revenue and EPS growth.
Anthropic's Claude AI chatbot experiences brief outage
Anthropic's AI chatbot, Claude, experienced a brief outage on Wednesday afternoon, affecting thousands of users. According to DownDetector.com, issues spiked around 1:05 p.m. EST, with most problems reported for Claude Chat, Claude Code, and the Claude app. Anthropic stated that a fix had been deployed to address the partial outage. This incident follows other recent brief outages for Claude, including one shortly after the release of its latest model, Claude Sonnet 4.6.
Global investors flock to Australian bonds amid AI market wobble
Global investors are increasingly turning to Australian bonds, seeking safety and high yields amidst concerns about the AI market. Inflows into Australian bond funds reached A$4 billion last year, the highest in four years, with the 10-year benchmark offering attractive yields compared to other developed markets. Factors like the Reserve Bank of Australia's stable policy and Australia's strong credit rating are drawing funds. This shift provides a refuge for investors wary of AI-related market volatility.
India's AI boom shifts focus from users to paid subscriptions
India has become the world's largest market for generative AI app downloads, with installs jumping 207% in 2025. However, companies are now ending free promotions to convert users into paying subscribers, as revenue generation has lagged behind download growth. While India drives about 20% of global GenAI app downloads, it accounts for only 1% of revenue. Companies like Perplexity and ChatGPT are adjusting their strategies to monetize this vast user base, facing challenges due to the market's value-conscious nature.
Nvidia earnings expected to calm AI market fears
Investors are closely watching Nvidia's upcoming earnings report for signs of the AI market's health, as the company is a key player in the AI boom. Big Tech companies are significantly increasing their capital expenditures, much of which goes towards Nvidia's advanced Blackwell chips. While this spending fuels growth, it also raises concerns among shareholders about cash flow. Nvidia CEO Jensen Huang is expected to reassure investors about demand and provide guidance on future platforms, potentially stabilizing the market.
TCS encourages AI use despite potential revenue impact
Tata Consultancy Services (TCS) is urging its employees to actively use artificial intelligence tools to improve efficiency and reduce costs, even if it means a short-term decrease in revenue. CEO K Krithivasan stated that employees should inform clients about AI-driven cost savings, accepting potential revenue cannibalization. This stance comes amid investor concerns about AI disrupting India's IT services industry, which has seen significant market value wiped out recently. TCS believes AI will create more opportunities than it eliminates.
Sources
- Workday Hits Over Five-Year Low as Sluggish Sales Forecast Sparks AI Disruption Fears
- Workday tumbles on dour revenue outlook amid AI threat
- Workday CEO's AI talk can't shake off weaker sales forecast
- Prediction: SoundHound AI Stock Will Soar in 2026
- Prediction: SoundHound AI Stock Will Soar in 2026
- The Artificial Intelligence (AI) Data Center Stock Big Money Managers Are Quietly Buying
- This AI Stock Has Soared 123% Since Its IPO. Is It Still a Buy for 2026?
- There's a structural shift taking place in AI that investors may be missing. How to play it
- Claude Outage: Thousands Briefly Report Issues With Anthropic’s AI Chatbot
- Global Funds Seek Refuge in Australian Bonds as AI Boom Wobbles
- India's AI boom pushes firms to trade near-term revenue for users
- Market looks to perennial darling Nvidia to settle AI fears
- TCS urges employees to use AI even if it cuts revenue
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