Software Stocks Under Pressure from AI: Anthropic Concerns Deepen Losses Despite Nasdaq Highs

New York | EcoPulse24

Software stocks faced a sharp sell-off at the start of 2026, even as the Nasdaq 100 approached record highs, underscoring a growing divide within the tech sector between chips and software.

Pressures mounted after startup Anthropic launched a new AI tool on January 12, reigniting investor concerns about accelerating technological disruption and the potential for AI tools to replace traditional SaaS (Software as a Service) business models.

Major Losses Among Leading Stocks

Intuit, owner of TurboTax, recorded a weekly drop of around 16%, its worst since 2022, while Adobe and Salesforce each fell over 11%.
According to Bloomberg, the software stocks basket tracked by Morgan Stanley lost about 15% year-to-date, after an 11% decline in 2025 - marking the worst annual start since 2022.

Why Are Investors Worried?

Anthropic’s Claude Cowork tool - even as a beta - showed capabilities to:

• Create spreadsheets from screenshots
• Prepare reports from scattered notes
• Perform office tasks rapidly with near-complete reliance on AI

This heightened fears that some enterprise software solutions could become replaceable.

A technology analyst at Mizuho Securities wrote, “Many investors see little reason to own software stocks right now, even at low valuations.”

Tech Sector Divergence

While software stocks weaken, the semiconductor sector continues to outperform, buoyed by clear demand visibility tied to AI.
Estimates from Bloomberg Intelligence show:

• Software and services profits in the S&P 500 are projected to grow 14% in 2026, versus 19% in 2025
• In contrast, chip company profits are expected to rise 45% in 2025 and 59% in 2026, fueled by major tech investments in AI infrastructure

Valuations at Historic Lows

Despite the pessimism, numbers show valuations are now more attractive:

• The Morgan Stanley software basket trades at 18 times projected 12-month earnings, a historic low
• The 10-year historical average exceeded 55 times

However, analysts believe this alone is not enough without clear signs of accelerated growth or tangible commercial AI success among major firms.

EcoPulse24 Analysis

The developments in software stocks reflect a structural shift in market perception:
AI is no longer just an enhancement but a direct competitor to long-standing subscription and repetitive-task business models.
In the short term, uncertainty remains high, explaining investors’ preference for chips, where visibility is clearer and investments more direct.
In the medium term, any demonstrable ability of software companies to turn AI into real revenue growth could mark a turning point, especially given today’s low valuations.