Over the past week, U.S. software and data-services companies have encountered significant losses, with the S&P 500 software and services sector losing around $1 trillion in market value since late January. Notable companies like ServiceNow Inc. (NOW), Salesforce Inc. (CRM), and Microsoft Corp. (MSFT) have faced sharp declines as concerns grow over their ability to compete with rapidly advancing AI technologies.
Thomson Reuters Corp. (TRI) experienced a record one-day drop of nearly 16%, despite meeting earnings expectations, as investor skepticism mounts regarding its defensive capabilities against AI-driven tools. Overall, major tech corporations—including Alphabet Inc. (GOOG), Amazon.com Inc. (AMZN), Meta Platforms Inc. (META), and Microsoft—have collectively lost over $950 billion in market value this week, as they prepare to spend approximately $650 billion on AI infrastructure this year, a 60% increase from the previous year.
As the market transitions from the initial phase of the AI boom to a more selective stage, investors are urged to reassess their strategies, focusing on companies that are adapting alongside AI advancements instead of relying solely on previous market leaders.
