Software experiencing ‘most exciting moment’ as AI fears hammer stocks

fund CEO Aaron Levy says that in the 20-year history of his cloud software vendor, “this was the most exciting moment we’ve ever had.” Wall Street doesn’t see it that way.

The stock is down 17% in 2026 after starting the year with its biggest monthly decline since 2023. It has fallen into a software swoon trap, as investors dump shares of companies they worry will be displaced by the rise of artificial intelligence agents.

the Hikma Fund for Cloud Computing They are down about 20% so far in 2026, including a 6.5% decline this week. There are a number of companies far worse than Box. HubSpot It fell by 39% this year after a 42% decline in 2025. Figma It decreased by 40% this year Atlantic decreased by 35%, and Shopify Decreased by 29%.

The generative AI boom, started by OpenAI’s ChatGPT just over three years ago, has quickly moved into the business world, with new tools that can create apps, websites, and other digital products in a matter of seconds or minutes with just a few text prompts. Levy describes the “cognitive dissonance” occurring within the industry, as companies see the power of new technology to enhance their products, while also dealing with the broader external fear that AI will destroy them.

“It kind of misunderstands the idea of ​​where companies tend to spend their resources and time and energy,” Levy told CNBC’s “The Exchange” on Wednesday.

He explained that companies prefer to pay for products and services from a vendor that specializes in back-office software or CRM systems rather than doing it themselves and taking on all the ensuing obligations.

Sales force CEO Marc Benioff made a similar argument, telling CNBC’s Jim Cramer in December that “we’ve got all the customer data” and that Agentforce, which automates sales and customer service workflows, is “the fastest-growing product I’ve ever seen in the history of Salesforce.”

Bill McDermott, CEO Service nowhe said last week, after his company I mentioned healthy quarterly results and guidance, that market concerns are misplaced and that its products act as a “semantic layer that makes AI ubiquitous in the enterprise.”

Dan Springer, former CEO of DocuSign ServiceNow’s offerings can’t be replaced by AI, at least not yet, said he, who now runs legal software startup Ironclad.

“I haven’t seen anything built that would attack that franchise,” Springer said.

However, both Salesforce and ServiceNow have lost about a quarter of their value this year.

A big catalyst for the accelerated sell-off was the progress made by Anthropic, the creator of the Claude AI model. Friday Anthropy Announce New legal, financial and marketing capabilities for Claude Cowork’s productivity tool, and Release plugins Under an open source license, allowing customization.

Claude competes head-to-head with OpenAI’s GPT models Google Gemini, but with a focus on selling subscriptions to large companies looking to deploy AI at scale.

“I’m fascinated by this technology,” Celso Pinto, senior product manager at software company The Access Group, said in a press conference Monday. Share X. He said he used Cowork and software development product Claude Code to review marketing copy, fix technical issues, and produce legal documents.

Earlier this month, Anthropic Signed a term sheet for a $10 billion financing round at a $350 billion valuation. OpenAI, the parent company of Google, is reportedly eyeing a valuation of more than $800 billion alphabet Its shares have risen more than 60% in the past year, pushing its market value to $4 trillion.

Software executives aren’t the only ones trying to counter the prevailing narrative. A number of technology investors and analysts said that, on the ground, they do not see IT buyers divesting their software solutions. Analysts at Stifel wrote in a report last month on HubSpot that the CRM company’s business looks good.

“Despite broader concerns about AI-related disruption, no partner has indicated near-term headcount reductions or AI-related seat disruption,” wrote the analysts who recommended buying the stock.

Cantor analysts cover Monday.com The project management software provider is “a profitable farmer that benefits from secular growth trends in digital collaboration and artificial intelligence,” he wrote in a note this week. They have a buy rating on the stock and see a 29% decline this year creating an “attractive setup.”

Byron Dieter, a longtime cloud software investor at Bessemer Venture Partners, is taking a buy-the-dip approach.

“Chaos creates opportunities!” Dieter wrote in A Share on X Wednesday. “There is a lot of money to be made for those who have the conviction to place the right bets on private and public programs now.”

At Box, where Dieter was an early investor, the 41-year-old co-founder and CEO says that even if investor fears are overblown, software providers have to embrace AI quickly to stay relevant.

“AI makes every software company have to stay on their toes,” Levy said. “It definitely forces every incumbent to make sure they’re doing more for their customers. I think that’s incredible for the market and for IT buyers.”

— CNBC’s Ari Levy contributed to this report.

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