The Artificial Intelligence (AI) Software Sell-Off Created a Rare Buying Opportunity. Here Are 3 Stocks to Grab in 2026.

2026-02-25 11:35:00 ET

The latest artificial intelligence (AI) models are capable enough that it's fair to wonder whether they can begin to threaten, or even outright replace, many of the traditional software products out there.

Many of the software-as-a-service (SaaS) stocks were market darlings for years due to their exceptional margins and growth. AI hasn't meaningfully impacted many software companies yet, but recent demonstrations by Anthropic's Claude are impressive enough to wonder about the coming years.

As a result, investors have fled software stocks, sending almost every name you can think of plummeting. There hasn't been this much fear in the software industry in recent memory. As with many things, reality usually lies between two extremes. AI will disrupt some software companies, but probably not all of them.

Continue reading