Analysts are raising earnings estimates for software stocks despite recent market turbulence, according to Goldman Sachs Group Inc. strategists. The positive revisions come even as investors have sold off shares amid concerns about artificial intelligence disrupting traditional software business models. This shift in analyst sentiment suggests the market may be overestimating AI's near-term impact on established software companies.

Goldman Sachs strategists note that earnings estimates for the sector have been climbing, indicating growing confidence in software companies' ability to maintain profitability. The analysts appear undeterred by the recent selloff that has affected many technology stocks, particularly those in the software space. This resilience in analyst estimates suggests that Wall Street sees the current market volatility as potentially overblown relative to software companies' fundamental business strength.

The trend of rising earnings estimates for software stocks signals that analysts believe these companies can navigate the challenges posed by AI disruption. This development could provide support for software stocks as investors reassess their concerns about the sector's long-term prospects. The positive analyst sentiment may help stabilize the software sector as it faces ongoing questions about how emerging technologies will reshape the industry.