AI Software Stress Test: Is Claude Their Partner or Replacement?
In early February, U.S. tech stocks narrowly escaped a scare triggered by fears that "AI software might be replaced." Although the partnership between AMD and Meta restored some confidence yesterday, the market remains on edge.
Over the past three months, software stocks have endured a "massacre." Investors previously assumed that AI Agents would act like bulldozers, leveling traditional software companies. However, a recent presentation by AI giant Anthropic shifted the narrative: Claude no longer aims to be the "Terminator"; it wants to be a "Partner."
Market Status: From "Universal Hype" to "Selective Picking"
Recent price action shows a shift in the market's attitude toward AI:
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Focus on Efficiency, Not Just Growth: Previously, simply mentioning "AI" sent stock prices up. Now, if your AI investment is high and revenue generation is slow, the market responds with an immediate sell-off.
$CoreWeave, Inc.(CRWV)$: The market focuses on CoreWeave’s plan to raise $8.5 billion.
Credit & Interest: With a B+ rating, can it leverage Meta’s credit backing to lower interest rates? If financing hits a snag (e.g., rumors of failed $4 billion talks with Blue Owl), its high leverage could become a market nightmare. Whether it can reach the 850MW computing power target by the end of 2026.
$Salesforce.com(CRM)$: Is Anyone Actually Paying for AI?
All eyes are on the $550 million ARR (Annual Recurring Revenue). This is the litmus test for "AI software monetization." If numbers miss, the market will fear AI is "cannibalizing" traditional subscriptions rather than driving growth.
Whether FY2026 revenue guidance can maintain double-digit growth. If it drops to single digits, fears of a "SaaSpocalypse" (Software Apocalypse) will intensify.
$Snowflake(SNOW)$: Is "Data Consumption" Rebounding?
Previous slowdowns worried the market. Investors want to see growth above 25%–28%. Anything less suggests that after buying chips, companies aren't actually busy processing data.
RPO expected between $8.8B – $9.0B. This reflects future spending intent and is key to determining if AI demand is "phantom heat" or real.
Note: Former darling $C3.ai, Inc.(AI)$ also reports after the bell tonight.
Can AI stocks assure the market rally?
Who will prove themselves in the new AI era?
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The rise of AI seems to have been stopped in it's track but in believe as a human race, we have proved time after time again that we shall prevail. We cannot help but to be more productive, problem solving, adapting and pivoting all that we know in order to "make money". I think that's part of the problem. Our goal isn't merely for survival, per say. Its not intermingled with the need to consume everything and be "cash rich". So yes, AI and tech will rally again. I'll say from June to Oct 2026 we will see this sector track ATHs once again.
Who will prove themselves in the new ai era $Alphabet(GOOGL)$ is the strongest of the declining ai stocks
I’m closely watching $CoreWeave, Inc.(CRWV)$ , $Salesforce.com(CRM)$ and $Snowflake(SNOW)$ . CoreWeave’s leverage and funding plans test infrastructure sustainability. Salesforce’s AI ARR shows whether customers are truly paying for AI. Snowflake’s consumption and RPO trends reveal if enterprise AI demand is real or just experimentation.
In my view, AI stocks can still support the rally — but only selectively. This is no longer about universal hype; it’s about execution. The winners will be those turning AI into durable revenue and cash flow, not just headlines.
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