“This idea that AI is going to destroy every software company is I think a little bit hard to get on board with, or at least premature,” said Emily Roland, co-chief investment strategist at Manulife John Hancock Investments.
Wall Street has gotten repeatedly burned calling a bottom in software stocks, which have been hit hard by fears that artificial intelligence will make the companies obsolete. But this week’s bounce is bringing some bottom-fishing investors back to the group on hopes that the worst may finally be over.
A popular exchange-traded fund that tracks the software industry is up more than 11% over the past three sessions including Wednesday, on pace for the biggest three-day advance since March 2020. Among notable movers, Oracle Corp. has soared 24% this week, and Microsoft Corp. and Palantir Technologies Inc. have both gained 11%.
