Intuit shares fell over 6% Wednesday, extending a rough start to 2026. The stock is now down nearly 10% year-to-date, mirroring a broader tech sell-off driven by AI disruption fears and a rotation out of high-flying software names.

Analysts at Jefferies argue the recent downdraft is overdone. They maintain Intuit as a top large-cap software pick, suggesting investor anxiety around 'AI vibe coding' is exaggerated. The firm believes the market is misjudging the company's defensive strengths and future growth trajectory.

A key argument is that tax preparation demands absolute accuracy. Federal regulators will not tolerate AI hallucinations as an excuse for errors, leaving TurboTax and QuickBooks in a strong position. Taxpayers won't risk fines or audits to save a small fee on unproven AI tools.

Jefferies also notes Intuit is just beginning to tap the mid-market and has ample room to grow its TurboTax Live service. With a target of 20% growth by 2030 and a valuation below peers, the firm sees a compelling entry point for investors.