Catenaa, Thursday, August 14, 2025- Billions of dollars in market value were erased early this week as mounting fears that artificial intelligence will upend traditional software development sent shares of industry leaders tumbling, Bloomberg reported.1
The selloff intensified after OpenAI Chief Executive Sam Altman warned that AI could trigger a “fast fashion era” for software, a shift in which applications are built faster and cheaper, eroding the competitive moat of established firms. Analysts say the warning has amplified the so-called “death of software due to AI” narrative that has weighed heavily on valuations.
A basket of software stocks is now trading near its lowest levels since January relative to semiconductor shares. Salesforce has fallen more than 30% this year, while Adobe is down about 25%.
The jitters have spread to related sectors. Gartner Inc. cut its full-year outlook last week, citing tariffs and budget cuts, but analysts also flagged competitive pressure from AI-powered research tools.
Some on Wall Street see the rout as overdone. Morgan Stanley upgraded Monday.com to overweight, saying the recent price collapse has more than priced in potential AI disruption risks.
- https://www.bloomberg.com/news/articles/2025-08-12/billions-wiped-out-as-software-stocks-sink-on-ai-disruption-fear[↩]
