J.P. Morgan: Concerns about artificial intelligence towards software stocks have been exaggerated.

JPMorgan Chase strategists stated that software stocks are expected to rebound from the historic downturn, as the market has already factored in unrealistic expectations of the short-term impact of artificial intelligence on the industry. Led by Dubravko Lakos-Bujas, the team pointed out that investors should increase holdings in high-quality software companies that are resistant to the impact of artificial intelligence. This "extreme price movements" make it likely that funds will flow back into this sector at least in the short term. The team wrote in their research report, "Given the significant position cuts, overly pessimistic market views on the impact of artificial intelligence on software industry, and robust industry fundamentals, we believe the risk-reward balance is increasingly tilting towards a rebound."