Software stocks have been hit hard amid fears of AI disruption, creating buying opportunities. Tech stocks, driven by AI, are thriving. Wall Street fears generative AI could hurt software companies. Software stocks have seen multiple compression, making them cheap buys. Top software stocks with strong competitive positions and attractive valuations include Microsoft, Atlassian, and Adobe.

Investors are overreacting to the potential disruption of software stocks by AI. Enterprise software has high switching costs and competitive moats. Many software companies have predictable future earnings. The sell-off has created opportunities for long-term investors. Microsoft, Atlassian, and Adobe are undervalued and present good buying opportunities.

Microsoft’s stock has fallen despite strong financial results. Atlassian is pushing its cloud-based platform with generative AI features. Adobe is expanding its AI offerings and has strong customer retention. These stocks are trading at low valuations and are excellent buying opportunities. Investors may be overlooking the potential of these software companies in the current market climate.

Read more at Nasdaq: The Tech Sector Wall Street Is Shunning Right Now for All the Wrong Reasons