J.P. Morgan strategist said that concerns about the disruptive impact of AI on software stocks are excessive, and software stocks are expected to rebound.

Morgan Stanley strategists said that software stocks are expected to rebound from a historic decline, as the market's anticipation of the disruptive impact of artificial intelligence in the short term is unrealistic. The team led by Dubravko Lakos-Bujas stated that with "extreme price movements" making it possible for funds to rotate back into this sector in the short term, investors should increase their allocation to high-quality software stocks that are more resilient to the disruptive effects of artificial intelligence. The team wrote in a report: "Given the clearing of positions, excessive pessimism about the future of the software industry disrupted by artificial intelligence, and solid fundamentals, we believe the risk balance is increasingly tilting towards a rebound." Software stocks have recently been hit hard due to concerns that new artificial intelligence tools may impact traditional software as a service businesses. This sell-off has been almost indiscriminate, regardless of whether software companies have already established partnerships with artificial intelligence companies or have proprietary data stacks.