Wall Street Thought Artificial Intelligence (AI) Would Decimate Software Stocks, but This One Has Tripled From Its 52-Week Low
This software company is proving it can use artificial intelligence to its advantage.
Overview
Earlier this year, the iShares Expanded Tech-Software ETF fell by as much as 36% from its 2025 record high. The software sector was effectively trading in bear territory during one of the strongest bull runs for the broader stock market in history.
Wall Street was concerned that artificial intelligence (AI) would decimate the software-as-a-service (SaaS) model for two reasons. First, analysts believed tools like Anthropic's Claude Code would make it easy for any business to replicate legacy software products. And second, they thought if AI reduced the global workforce by increasing economic productivity, then any SaaS company charging customers on a per-user basis would experience a sharp drop in revenue.
Details
But it turns out those fears were overblown, because many software companies, including Atlassian (NASDAQ: TEAM), have posted exceptional operating results during the past couple of quarters. In fact, Atlassian stock is now up more than 200% from its April low of $57 (as of Sept. 30), and here's why I predict it's going even higher.
Source
Originally published at www.fool.com.