Outperforming 99% of its peers in the industry alert: In the era of AI, very few software companies will survive.

The strategy of selling before the sharp decline in software stocks allowed Polar Capital fund manager Nick Evans to make a substantial profit. He warned potential bargain hunters: most stocks still carry risks, and there are very few software companies that can survive this storm. "We believe that application software is facing a survival threat from artificial intelligence," Evans said. The $12 billion global technology fund he manages outperformed 99% of similar funds in the past year and 97% over the past five years. Market concerns that advanced artificial intelligence tools such as those owned by Anthropic PBC, including Claude Cowork, will disrupt the software industry have led to a significant drop in related stocks this year. Exchange-traded funds tracking the U.S. software sector have fallen by 22%, contrasting sharply with semiconductor stocks that have soared due to increased demand driven by artificial intelligence.