Software stocks bouncing back from their AI panic — ride the recovery
Software stocks are rebounding after a painful sell-off earlier this year driven by fears that AI would make their products obsolete. They've now crossed a key recovery threshold.
Idea
Earlier this year, investors dumped software stocks on fears that AI would replace them. But now the sector has crossed an important recovery milestone, suggesting the worst is over. The reality is setting in that most established software companies aren't being killed by AI — they're embedding it into their products and actually growing faster. When a beaten-down sector starts turning around, it often has a long runway as skeptical investors gradually come back. Buying a basket of software names through an ETF like IGV lets you ride that recovery without having to pick a single winner.