Software Sector Turbulence — Pressure Before Transformation ⚙️
Last night’s U.S. software selloff wasn’t random — it was AI-driven repricing. Leaders like NOW are feeling the strain as the AI wave forces deep adjustments across the sector. In the short term, AI compresses margins for traditional software, raises costs, and challenges legacy business models.
But zoom out, and the picture flips.
AI is not just disruption — it’s selection. New tracks, new pricing power, and entirely new business models will emerge. The market is shifting from broad optimism to hard differentiation.
For A-share software, this means one thing: dispersion accelerates. Strong companies adapt, weaker ones get left behind. Sharp stock declines don’t mean the bottom is in — volatility may intensify before clarity returns.
This isn’t the end of software. It’s the reset before the next leaders are born.