Fresh AI jitters hit ASX software stocks as investors brace for sector split
A fresh wave of AI-driven anxiety has hammered US software stocks and spilled onto the ASX, as local tech firms scramble to convince investors their AI strategies can deliver real returns.
The latest round of AI jitters that pulled USD300 billion ($427 billion) out of the US software and data stocks overnight proceeded to wipe more than 7% off the ASX technology index on Wednesday morning.
Simmering concerns over an AI bubble already saw wild swings in two of the biggest AI investors, Meta Platforms and Microsoft, last week, before Anthropic’s release of new legal automation tools for its Claude Cowork platform sparked a massive selloff across legal, publishing and financial data stocks overnight.
But while investors continue to rotate out of traditional software developers, other tech companies involved in the build-out of the impending AI age may be well positioned to outperform, according to Betashares investment strategist Hugh Lam.
“The technology ecosystem is not just software,” he told Capital Brief.
“It’s important to understand that there are hardware and infrastructure companies within that space and they have actually done relatively well compared to the software names.
