AI is no ‘business killer’: Why Wall Street is buying software stocks in 2026

Core Insights - The software industry is experiencing a shift due to AI, but the notion that software is dying is overstated, as signs of decline are not evident [1] - The primary impact on the software sector has been a narrative of fear among customers, which is beginning to change as companies recognize that they and their vendors are not being overtaken by AI [2] Group 1: Market Recovery and Key Picks - Analysts from D.A. Davidson, Piper Sandler, and Truist Securities have identified companies likely to lead the recovery, focusing on those providing infrastructure for AI [3] - D.A. Davidson's top pick is Commvault (CVLT), projected to have over 50% upside with a price target of $220, driven by sustained momentum and margin recovery [4] - Other notable stocks include Manhattan Associates (MANH) with a price target of $250, Zeta Global (ZETA) at $29, Box (BOX) at $45, and Datadog (DDOG) with a target of $225 [5][6] Group 2: Additional Analyst Insights - Piper Sandler's James Fish highlights companies like Rubrik (RBRK) with a $75 target, Nutanix (NTNX) at $50, and Axon (AXON) with a $563 target, focusing on "Gen Z" winners and infrastructure plays [7] - Truist Securities' Terry Tillman discusses skepticism around traditional software pricing models, suggesting a shift towards consumption-based pricing as AI becomes more prevalent [8] - As workflows transition to autonomous AI agents, billing based on usage is seen as a logical evolution, allowing for continuous value capture [9]