JP Morgan’s note to investors on software companies: You are over reacting; we believe …

 JPMorgan strategists suggest the recent sharp fall in software stocks may be an overreaction to AI disruption fears. They believe markets are pricing in unrealistic near-term impacts, creating an opportunity for higher-quality software companies to rebound. Recent quarterly results and earnings forecasts indicate solid fundamentals, with many firms poised to benefit from AI rather than be replaced. JPMorgan strategists suggest the recent sharp fall in software stocks may be an overreaction to AI disruption fears. They believe markets are pricing in unrealistic near-term impacts, creating an opportunity for higher-quality software companies to rebound. Recent quarterly results and earnings forecasts indicate solid fundamentals, with many firms poised to benefit from AI rather than be replaced.