By R. Scott Raynovich
Publication Date: 2026-02-05 15:36:00
It’s been a remarkable week in tech markets, with pundits chattering about so-called “SaaSmageddon” in software stocks plagued by fears that AI is eating their lunch. But now the huge gains we predicted have actually occurred at leading industrial companies, showing that AI’s gains may be greater outside the technology sector.
What happens? In a famous 2011 essay, Marc Andreessen, co-founder and general partner of Andreessen Horowitz, wrote that software is eating the world. Recently, Nvidia CEO Jensen Huang stated that AI is eating software, but just yesterday he backtracked and said the software sell-off was illogical.
With each passing day, the market evidence is accumulating that shows that enterprise software is indeed becoming AI’s main meal, as companies around the world realize that it is easier to develop their own software to automate processes and create new value.
For all ServiceNow, Salesforce, SAP and Oracle who have all lost between 10% and 20% of their…
