Software stocks are experiencing their worst month since the Lehman Brothers collapse, with the iShares Expanded Tech-Software Sector ETF on track for its steepest monthly drop since October 2008. The selloff intensified after Microsoft Corp. dropped more than 12%, sparking concerns about AI’s impact on software business models. High-flying software names like Palantir Technologies Inc, Oracle Corp, and AppLovin Corp are down about 20% for the month, leading traders to question if this move is technical or structural. Analysts are debating whether changing fundamentals will reshape the software industry as AI begins to rewrite how software is built, sold, and consumed. The market may be facing a major inflection point as AI migrates from centralized data centers into enterprises, devices, vehicles, and machines, potentially suppressing the buy-side market for software. Investors must now consider whether companies are built for an era of unlimited appetite or positioned for a world where “enough” is finally defined.

Read more at Yahoo Finance: Microsoft, Palantir Lead A Software Rout Not Seen Since 2008 Lehman Crisis