Amazon Web Services CEO Matt Garman suggested that investors might be worrying too much about the risk of artificial intelligence models slowing growth of major software companies.
“Look, my own opinion is that much of the fear is overblown,” Garman told CNBC’s Jon Fortt on Thursday.
Technology stocks have sold off this year following the release of software built on top of AI models from the likes of Anthropic and OpenAI.
The iShares Expanded Tech-Software Sector Exchange-Traded Fund is down 24% so far in 2026, on par for the worst year since 2022, as inflation and rising interest rates drive companies to streamline post-pandemic technology spending.
Analysts have taken to labeling the drawdown in software as a service stocks as a “SaaS apocalypse.” Software executives have responded by saying core business metrics have not deteriorated.
The CEO of data analytics software company Databricks said last week that he thought the correction is an overreaction.
Last week, Amazon said…
https://www.cnbc.com/2026/02/12/aws-ceo-garman-software-ai-fears.html