In early 2026, a 'SaaSpocalypse' panic swept through Wall Street. The market feared that AI giants like OpenAI and Anthropic would completely disrupt traditional enterprise software models, causing $iShares Expanded Tech-Software Sector ETF (IGV.US)$ a plunge of over 40% from their highs(See the image below)(though they have clearly rebounded significantly from those lows), with $ServiceNow (NOW.US)$ 、 $Salesforce (CRM.US)$ 、 $Workday (WDAY.US)$ leading names such as Datadog, ServiceNow, and Adobe experiencing an epic valuation drop.
AI has instead become a growth engine
However,From late May to early June, the software sector showed clear signs of a rebound, with many stocks $ServiceNow (NOW.US)$ $Workday (WDAY.US)$ $Datadog (DDOG.US)$ $Paychex (PAYX.US)$ $Salesforce (CRM.US)$ $Automatic Data Processing (ADP.US)$ rising between 10% and 40% over the past month. (See chart below)The software sector has shown a clear rebound over the past month, with sentiment gradually shifting from panic toward recovery.
However, note thatShort-termthe recent sector rebound may only represent an oversold recovery, with internal divergence still evident，not every software stock can outperform. As shown in the chart above, not all software stocks exhibited... at their lows