S&P 500 software index plunges 28% since October as AI fears trigger investor exodus. Companies like Salesforce and ServiceNow announce $70.5 billion in accelerated buybacks to stem losses, but analysts question if repurchases alone can revive confidence. The rout began after Anthropic’s AI advancements raised doubts about valuations, forcing firms to reassess long-term strategies.

Software giants ramp up buybacks: Salesforce boosts its program by $30 billion, while ServiceNow adds $5 billion to its repurchase plan. Broader tech sector buybacks surge 63% to $110.1 billion, yet skeptics argue these moves lack substance without addressing AI’s disruptive potential. Investors crave clarity on how companies will adapt to rapid technological shifts.

Analysts dismiss buyback optimism: Portfolio manager Andrew Slimmon notes firms like Paychex combining buybacks with $1 billion repurchase pledges see modest gains, but broader sector recovery hinges on proving AI’s impact is manageable. “Buybacks signal confidence, but they don’t erase fundamentals,” says Chase’s Peter Tuz.

Market reality check: Despite aggressive repurchases, software stocks remain under pressure. Broader tech buybacks hit $110.1 billion year-to-date, yet without demonstrable AI resilience, investor unease persists. The sector’s rebound depends on balancing innovation with economic pragmatism.