Just when markets thought they understood the AI story, it shifted again.

This week saw a historic rout in global software stocks - their worst week since April last year and their weakest relative performance since the tech bubble burst 25 years ago. In a single day, around US$300bn was wiped off the sector.

Is this a genuine turning point, or are the markets shooting first and asking questions later?

In this episode, Jane Parry is joined by Kamal Warraich, Head of Fund Selection, to unpack what’s driving the volatility and what it means for investors and the AI story.

They cover:

• Why new AI tools from the company Anthropic sparked disruption fears

• How enterprise software business models could be challenged

• What ‘economic moats’ mean and whether proprietary data still protects companies

• Why markets may be reacting first and analysing later.

Kamal explains that while AI has the potential to reshape parts of the software industry, not all businesses are equally exposed. Some companies may even ultimately benefit from the very disruption that’s causing today’s volatility.

If you have any feedback on this episode, the podcast overall or questions regarding future topics, please email coffeebreak@canaccord.com. We’d love to hear from you.

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