Asian software stocks plunge after U.S. peers decline on fears over AI-led disruption

Group 1: Market Reactions - Wall Street's concerns about AI-driven disruption have impacted tech stocks in Asia, with Japanese software firms leading the declines [1] - The Nifty IT index in India fell nearly 6%, with major firms Tata Consultancy Services and Infosys dropping 5.8% and 6.2% respectively [2] - Chinese software companies also experienced significant sell-offs, with Kingdee International Software plunging over 15% and Tencent falling 3.27% [3] Group 2: Industry Insights - Software stocks are under pressure as new AI tools from companies like Anthropic raise concerns about valuation multiples and competitive dynamics [4] - For the software sector to recover, companies need to demonstrate that AI can be a growth enabler rather than a threat, which may take time due to investor skepticism [5] - UBP favors infrastructure software and cybersecurity sectors, where AI disruption risk is lower and pricing power exists [5] Group 3: Specific Company Performance - ServiceNow shares tumbled nearly 7%, marking a year-to-date loss of 28%, while Salesforce dropped about 7%, leading to a 26% decline in 2026 [6] - Intuit's shares fell nearly 11%, resulting in a year-to-date decline of over 34%, contributing to a 1.4% drop in the Nasdaq Composite [6]