Software stocks are sliding. Is it time to 'buy the dip'?
USA TODAY
Shares of Microsoft, Oracle and Salesforce are sliding as investors debate whether AI will disrupt or destroy software firms.
Software stocks are sliding.
As of Feb. 19, Microsoft stock is down 28% from its all-time high of last fall. Oracle stock is down 55% from its record high, also in late 2025. Salesforce stock has lost 27% of its value this year.
Analysts offer competing, somewhat contradictory theories about the software selloff. By one account, stock traders fear artificial intelligence will put software companies out of business by rendering their products obsolete. Another narrative suggests software firms have overspent on AI and won’t reap sufficient returns on their investments.
In other words, software stocks are sinking either because AI is a game-changer or because it isn’t. Both theories can’t be right.
Whatever set it off, the software selloff has been swept up in a larger debate about the so-called AI bubble: A dramatic runup in technology stock prices fueled by overexuberance about the promise of artificial intelligence.













