Shares of European companies embracing artificial intelligence plunged this week amid concerns that AI could disrupt sectors like software. Companies like SAP and Dassault Systemes saw significant drops. Despite broader market gains, European adopter stocks fell due to powerful new AI models challenging business models and high stock multiples.

New AI tools like OpenAI’s GPT-5 and Anthropic’s Claude for Financial Services are raising questions about the future of AI adopter stocks. Market players are rethinking their investments as these tools become more powerful, leading to a decline in European software companies’ stock prices.

Some investors believe that markets will eventually differentiate between potential winners and losers in the AI sector. While AI may impact software companies, those with deep client integration and proprietary data may still have competitive advantages. Companies like Experian and Sage, deeply embedded in workflows, could withstand AI disruption.

The selloff in AI adopter stocks presents an opportunity for investors to pick winners. Some companies may benefit from AI adoption as an opportunity for earnings growth. However, companies must demonstrate this potential in order to see positive returns. The clock is ticking for big spenders on AI to show profitability.

Read more at Yahoo Finance: Analysis-Powerful new AI models knock the wind out of European adopter stocks