Investor Dan Ives says the tech selloff that has been spooking markets is actually a ‘generational opportunity’ to get in on the action

The once relentless rally in AI-fueled stocks has lost momentum, as investors confront the unsettling idea that advances in artificial intelligence could erode the very value propositions that made tech giants dominant in the first place. Yet some executives and market veterans warn against short-term panic, calling the selloff a rare opportunity to buy into the next phase of the AI boom.

The AI growth story has been tempered by a widespread selloff in software stocks. Call it the software-mageddon or the SaaSpocalypse, but companies who specialize in designing, selling, and maintaining digital software products are getting battered. Earlier this month, JPMorgan analysts wrote that software companies had lost around $2 trillion in value over the past year, calling it “the largest non-recessionary 12-month drawdown in over 30 years.” 

The culprit has been an increasingly widespread feeling among investors that AI is sorting tech players into winners and losers. Under this view, software companies could fall into the latter camp as the cap...