Mumbai, India — February 11, 2026 — JPMorgan’s got a new message for investors: don’t let the recent plunge in software stocks freak you out. The way they see it, a lot of the panic is about AI shaking up the industry, not about actual business problems—and that’s causing people to overlook some solid opportunities.
Here’s what happened: software stocks took a beating, wiping out a ton of value. Most of that drop came from nerves about how new AI tools might hit old-school enterprise software companies.
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JPMorgan’s analysts think folks are overreacting. According to their latest note, this sell-off feels more about fear than facts. Investors seem to have priced in every possible short-term AI risk, even though the big software companies are still holding up well on the fundamentals.
The bank’s strategists point out that markets can get carried away, especially when everyone’s glued to the latest AI headlines. Right now, they believe share prices have fallen too far, and that could open the door for patient investors who aren’t spooked by short-term swings.
So, what’s actually happening underneath all this? JPMorgan says plenty of established software companies still look pretty good. They’ve got strong foundations, long-term customer contracts, and they play a crucial role in the way big businesses spend on tech. Some of the big names—think the large, diversified firms—keep popping up as examples of resilience.
This isn’t just JPMorgan talking, either. Around the world, a lot of analysts say the same thing: AI isn’t about to wipe out traditional software overnight. In fact, in most business-critical areas, AI will probably work alongside existing software, not replace it right away.
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Why should investors care? Well, the sell-off’s grabbed attention because AI is moving fast, and people are rethinking their bets across the tech sector. JPMorgan says automated trading and herd mentality have driven prices down even more, making the drop look worse than it really is.
So, if you’re investing in this space, it’s time to look past the headlines. Focus on which companies are actually strong, not just what the market’s doing day-to-day. JPMorgan’s advice: stay disciplined, pay attention to both the tech shifts and the core business numbers, and don’t let the noise throw you off.
