Good morning, dear CEOs and investors!
Until very recently, the narrative around AI was that the $600 billion of annual corporate capital expenditure (âcapexâ) fueling it was good for stocks in the short term. The companies receiving that money as new revenue (AI model makers, data center constructors, and the energy companies supplying them) would be the immediate beneficiaries. The efficiencies delivered by AI would be good for tech and non-tech companies alike. The Big Tech hyperscalers have always argued that the demand from their revenue-paying clients far exceeded their ability to supply AI services.
**That narrative was turned on its head in the past 24 hours as it dawned on traders that AI also has the ability to reduce the revenues of a vast range of adjacent tech companies. **
It was all fun as long as only the labour slaves in your offices were made obsolete. Now you're upset because you finally found out that software can make your whole company obsolete...
Btw: Yes, in the last 24 hours stocks in general went down, but I didn't check for specific software stocks.
Tech stocks in free fall as traders realize AI has the ability to cut revenues across the board | Fortune https://fortune.com/2026/02/04/tech-stocks-palantir-anthropic-ai-cut-reduce-revenues/
