Software Bear Market: 2 AI Stocks With 42% and 47% Upside to Buy Now, According to Wall Street
2026-03-10 05:08:00 ET
The S&P North American Technology Software Index , which tracks 110 software stocks, has fallen 26% from the all-time high it hit in September. The puts the index in bear market territory, and artificial intelligence is the root cause.
Specifically, investors are worried AI code generation tools will reduce demand for existing software products, but Nvidia CEO Jensen Huang is very skeptical. "There's a whole bunch of software companies whose stock prices are under pressure because somehow AI is going to replace them," he said at a recent event. "It is the most illogical thing in the world."
Indeed, Wall Street thinks Microsoft (NASDAQ: MSFT) and Datadog (NASDAQ: DDOG) are deeply undervalued at current prices.
NASDAQ: MSFT
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