Is the AI bubble popping itself? Software rout raises concerns
By CNBC
February 7, 2026, 2:40 PM EST
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CNBC: Wall Street debates whether the recent software sell-off marks the bursting of an AI bubble. Software stocks plummeted, raising concerns over the industry’s future.
A recent sell-off in software stocks has sparked concerns about the impact of agentic AI on the industry. The iShares Expanded Tech-Software Sector ETF (IGV) dropped over 9% this week, with fears that incumbent players could be disrupted. Some investors view the pullback as a buying opportunity, while others predict further decline. The market’s rotation towards real economy sectors like energy and industrials has been evident, with the Dow Jones Industrial average being the only index in the green. For more details, visit CNBC.
