Recent developments in artificial intelligence have triggered a significant selloff in the software industry, wiping out nearly $1 trillion from software and services stocks. The launch of new AI tools by companies like Anthropic has heightened fears of an existential threat to the SaaS market, leading to panic among investors. As Wall Street reacts to the disruptive potential of AI, fears that demand for traditional software services may decline have also contributed to the turmoil. Despite warnings about speculative excess, some analysts believe this moment could present a buying opportunity as the market recalibrates.