Software stocks experienced a recent pullback due to fears of AI disruption, creating buying opportunities. JPMorgan strategists believe worst-case scenarios are unlikely, recommending exposure to higher quality, AI-resilient companies like Microsoft and Palo Alto Networks. Morgan Stanley sees attractive opportunities driven by strong revenue expectations and improved earnings revisions.

Global markets reacted to AI advancements by Anthropic, causing the S&P 500 software and services index to fall 17%. While further weakness is possible, adding exposure to high-quality software companies is recommended. Retail investors are buying software and tech stocks post-selloff, ignoring concerns.

Strategists at JP Morgan and Morgan Stanley see potential for a rebound in software stocks amidst AI disruption fears. JPMorgan suggests a focus on higher quality, AI-resilient companies, while Morgan Stanley cites positive drivers like strong revenue expectations and the benefit of a weaker dollar for mega-cap tech companies.

Read more at Yahoo Finance: AI disruption fears create buying chance in US software stocks, strategists say