<div id="readability-page-1"><p>The recent selloff in global software and services stocks has erased nearly $1 trillion in market value, as investors question how artificial intelligence could change the industry. The decline followed the rollout of new automation features from Anthropic's Claude AI model, which can handle tasks such as legal research, marketing, sales, and data analysis.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>The pressure has spread across the sector. Stocks tied to legal, data, and enterprise software were among the hardest hit. Companies such as Thomson Reuters (TRI), RELX (RELX), and MSCI (MSCI) saw sharp declines, while broader software names like Adobe (ADBE), Salesforce (CRM), and Intuit (INTU) also dropped as investors worried about potential business disruption.</p> <h2><strong>AI Tools Trigger a Reality Check for Software Valuations</strong></h2> <p>The selloff gained momentum after new AI automation tools showed how quickly the technology is moving into areas like legal research, marketing, coding, and data analysis. These are key services that have supported steady revenue for many software companies.</p> <p>Some analysts believe the market reaction reflects a broader change in how investors view software companies. Schroders analyst Jonathan McMullan said investors are &#34;aggressively repricing&#34; software firms as AI tools allow businesses to operate with fewer workers, which could weaken traditional subscription-based software models.</p> <p>The impact has already been visible in individual stocks. Palantir (PLTR) dropped sharply despite strong earnings, showing how sector sentiment can outweigh company performance.</p> <h2><strong>Analysts Remain Split on the Long-Term Impact</strong></h2> <p>Not all experts believe AI will replace software companies. Nvidia (NVDA) CEO Jensen Huang called fears that AI will replace software &#34;illogical,&#34; arguing that AI systems rely heavily on existing software tools rather than replacing them entirely.</p> <p>Similarly, JPMorgan analyst Mark Murphy said it is an &#34;illogical leap&#34; to assume AI tools will replace mission-critical enterprise software, suggesting that many platforms could remain essential as AI adoption grows.</p> <p>Some strategists also see the selloff as overdone. Wealth Consulting Group strategist Talley Leger said AI could help software companies build better products and improve margins over time.</p> <h2><strong>Which Software Companies Can Keep Up With AI?</strong></h2> <p>Investors are now focused on which software companies can adapt quickly to AI-driven changes. Firms that successfully integrate AI into their platforms or expand into new enterprise tools could benefit, while companies relying heavily on legacy products may face pressure.</p> <p>We used TipRanks' Comparison Tool to assemble all the stocks mentioned in the article, offering a deeper view of each company.</p></div>

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<p>The recent selloff in software stocks has wiped out nearly $1 trillion in market value as investors reassess the impact of AI on the industry. Companies like Thomson Reuters and Adobe faced significant declines due to fears of AI disrupting traditional business models. While some analysts believe the market reaction is overblown, others argue that AI could enhance software products. Investors are now keen on identifying which companies can adapt to AI changes effectively.</p>

- The recent selloff in global software and services stocks has erased nearly $1 trillion in market value, driven by concerns over the impact of artificial intelligence on the industry.  
- Significant declines were observed in companies such as Thomson Reuters, RELX, and Adobe, prompting analysts to suggest that investors are "aggressively repricing" software firms due to potential business disruption from AI tools.  
- Opinions remain divided among experts regarding the long-term impact of AI, with some arguing that it will enhance rather than replace essential software.

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AI Panic or Real Reset? Software Stocks Lose Nearly $1 Trillion as Investors Weigh AI's Threat