So why is the market punishing software stocks over a bubble?

Everyone keeps saying AI is a bubble, overhyped and maybe even temporary So why is the market punishing software stocks over a bubble? Here’s the thing AI isn’t replacing software. It runs on software. Companies still need tools, platforms, and systems to operate every day The risk for software stocks isn’t that they’re going away, it’s that AI hype creates uncertainty and changes the narrative about where growth and money are going Investors start asking questions Will companies pause traditional software spending to explore AI solutions Will hot new AI startups steal attention from established players Could hype and valuations shift capital away from regular software growth Software itself isn’t disappearing, but hype alone is enough to make the market rethink who gets valued and how Truth is, the US stock market feels unstable right now, with all the hype and manipulation going on.