Investors are growing concerned that AI tools could disrupt traditional software services, leading to a 22% year-to-date decline in the software sector. Popular software stocks like Intuit and ServiceNow are down more than 30%, prompting fears of a software “Armageddon.”

Amazon Web Services CEO believes fears surrounding AI’s impact on software companies are exaggerated, though AI will undoubtedly reshape the industry. AWS, a major player in cloud infrastructure, saw a 24% increase in revenue to $35.6 billion in the last quarter, with operating income rising to $12.5 billion.

Analyst Dan Ives thinks the recent sell-off in software stocks has been overdone due to uncertainty around AI’s automation capabilities. He is re-adding Salesforce and ServiceNow to his list of top AI stocks, emphasizing that both companies will play a crucial role in the AI revolution.

Read more at Yahoo Finance: AWS CEO flags what’s next for AI and beaten-down software stocks