Wall Street Thought Artificial Intelligence (AI) Would Decimate Software Stocks, but This One Has Tripled From Its 52-Week Low
This software company is proving it can use artificial intelligence to its advantage.
Earlier this year, the iShares Expanded Tech-Software ETF plummeted by up to 36% from its 2025 peak. The software industry found itself trading in bearish territory amidst one of the boldest bull markets in history. Wall Street fretted that artificial intelligence (AI) would wreak havoc on the software-as-a-service (SaaS) model for two key reasons.
Firstly, experts feared that AI-powered tools such as Anthropic's Claude Code would enable businesses to effortlessly duplicate existing software products. Secondly, they theorized that if AI boosted global workforce productivity, SaaS companies charging customers per user would witness a significant revenue decline.
However, it appears those apprehensions were overstated. Many software firms, including Atlassian (NASDAQ: TEAM), have delivered stellar operating performances over recent quarters. In fact, Atlassian's stock has surged more than 200% from its April low of $57, as of September 30. I foresee its upward trajectory continuing.
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