Software Stocks That Are Probably Safe From AI's Disruption

The article argues that some software stocks may be relatively insulated from disruption as artificial intelligence changes how software is built and sold. It frames a “SaaS-pocalypse” narrative that started earlier in the year, attributing selloffs to AI-driven disruption fears, while suggesting AI’s impact could be more benign as SaaS firms pivot toward becoming AI-focused businesses. The piece contends that AI coding and agentic approaches are best viewed as tools that can help companies innovate, rather than automatically eliminating software value. It also links the industry’s pressure to eroding “software moats” and shrinking margins, especially for firms that become complacent. In that context, the article references Palo Alto Networks as a named example, noting its shares rose more than 9% on Monday and had previously fallen about 35% over six months, before reaching new all-time highs.