Autodesk is a deep value opportunity with a 46% discount on forward P/E and a DCF price of $340.
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AI Is Crushing Software Stocks. I Ranked the Bargains
Dividend TalksApr 24, 2026
Software stocks are facing significant pressure due to AI's impact on the sector's economics, with many large companies experiencing substantial drawdowns from their highs. Despite a resilient broader market and positive economic outlook, the software selloff raises concerns about future earnings growth and profitability in the face of evolving industry dynamics.
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Tickers discussed in this post
ADP is a top dividend-friendly stock with a 25% margin of safety, strong recurring revenue, and dividend growth.
Palantir has strong momentum and investor belief in AI adoption, but trades at extremely demanding multiples even after a pullback.
AI is a major theme impacting software stocks, but the specific ticker 'AI' is not directly addressed with a buy/sell stance.
Service Now is part of the software sector facing uncertainty and money moving out, with no clear inflection in growth.
IBM is part of the software sector facing uncertainty and money moving out, with no clear inflection in growth.
Nvidia (Palantir) is down 32% from its highs, indicating broader market challenges.
Oracle is experiencing a significant pullback, down 49% from its 52-week high.
Microsoft is down significantly from its highs, showing AI's impact extends to major tech players.
Data Dog is among the software stocks that have fallen over 50% from their peaks.
Workday is down significantly from its highs, indicating sector-wide issues.
Intuit is part of the software group seeing major drawdowns from 52-week highs.
Adobe is experiencing significant weakness, down over 50% from its peak.
Salesforce is among the software stocks significantly down from highs, reflecting broader sector weakness.
Service Now stock is being punished despite solid fundamentals, indicating a market shift against software companies due to AI.