By Daniel de Visé
Publication Date: 2026-02-22 10:05:00
February 22, 2026, 5:05 a.m. ET
- Major software stocks like Microsoft, Oracle and Salesforce have seen significant declines from their recent highs.
- Analysts are divided on whether the selloff is due to fears that AI will make software obsolete or whether companies have spent too much on AI.
- The rise of AI tools that allow non-programmers to create software has heightened investor concerns about the future of the software industry.
Software stocks are slipping.
As of February 19, Microsoft shares were 28% below their all-time high set last fall. Oracle shares have fallen 55% since their record high, also in late 2025. Salesforce shares have lost 27% of their value this year.
Analysts have competing, sometimes contradictory theories about the software sell-off. Stock traders fear artificial intelligence will drive software companies out of business by making their products obsolete, according to a report. Another narrative suggests that software companies have spent too much on AI and will not get sufficient returns from it…
