Goldman Sachs issued a warning on February 9, 2026, suggesting that software stocks face a potential multi-year decline. The report attributes this outlook to the disruptive impact of artificial intelligence. Analysts compared the current software market to the historical collapse of the newspaper industry during the internet's emergence.
Figma represents a notable example of this volatility, with its stock price dropping 41% this year. Rapid AI advancements are prompting investors to fundamentally re-evaluate the long-term value of software firms.
Software stocks are currently underperforming the Nasdaq Composite by the largest margin seen this century. Each new AI release is viewed as a disruption to existing business models. Analysts note that a clear positive catalyst to renew investor interest has yet to emerge.