From AI Darlings To Old Economy? Why Investors Flee Software And Chase Value Stocks Again

Software stocks are unraveling fast as investors rethink AI winners, pushing capital out of high-growth tech and back into value stocks and cyclical corners of the market. Over the past week alone, the sector — tracked by the iShares Tech-Expanded Software Sector ETF (NYSE:IGV) — has fallen nearly 20%, extending losses to more than 30% from its late-October highs. The catalyst isn't higher rates or weaker demand — it's growing fear that AI itself may disrupt the very companies once seen as its biggest b ...