Software shares climbed in pre‑market trading after Guggenheim upgraded three companies, signaling that fears of artificial intelligence as a death knell are overstated. The move comes amid growing debate over AI’s impact on software profitability and growth trajectories.

Analyst John Di Fucci wrote that valuation models implying many software firms will decline perpetually due to AI are flawed. He cautioned that competition from AI‑centric firms will shift dynamics, but he dismissed the notion that AI would annihilate traditional software providers. Nevertheless, the analyst stressed that most companies can adapt by integrating AI features into their existing platforms.

Guggenheim’s upgrade reflects a broader industry belief that the fatal bear case surrounding AI is a hallucination. While AI firms may siphon market share, the core software business remains robust and continues