Software stocks once again collectively plunged, and the prospects for industry growth were heavily impacted by the AI intelligent body.

As concerns about the disruptive impact of artificial intelligence continue, shares of software companies fell on Thursday. The iShares Expanded Technology Software Industry ETF dropped 3.6%, following a 0.9% decline in the previous trading day, expected to hit the lowest closing level since November 2023, with a cumulative drop of nearly 28% so far this year. An index tracking software as a service stocks fell by 5.5%, with a cumulative decline of nearly 10% this week and almost 40% since 2026. This year's sell-off is driven by investors' worries that AI products will weaken demand for traditional service providers, thereby dragging down their growth and pricing power in the future. The rapid development of AI intelligence is seen as a particular challenge for SaaS stocks.