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On the one hand, we see a sell-off of fast-growing software companies because their continued existence is supposedly threatened by AI.
On the other hand, we see, if not a sell-off, then a deep uncertainty about whether we are in an AI bubble, when, for example, the stock of Nvidia, which has record financial performance, has been drifting sideways for several months in a row.
Then we also have Google and Microsoft, which are software and AI companies at the same time. The sell-off of the first is starting, while the second is in full swing.
So what is this? My guess is that the market simply does not understand what is happening and instead of guessing, it is fleeing to protective stocks (actually forming a real bubble there).