Software Slumps on AI Fears: Intuit Plunges 16% | 01/18/26
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Software Slumps on AI Fears: Intuit Plunges 16% | 01/18/26
Key Stories:
- Intuit Inc., owner of popular tax software TurboTax, saw its shares tumble a significant 16% last week, marking its worst performance since 2022. This sharp decline wasn’t isolated; Adobe Inc., known for its creative suite, and Salesforce Inc., the customer relationship management software giant, also experienced substantial drops, both sinking more than 11%. These movements are directly tied to rekindled fears of disruption following the January 12th release of a new artificial intelligence tool from startup Anthropic. Investors are clearly reacting to the potential for rapid AI innovation to fundamentally challenge established software business models. Read more
- Beyond individual stock movements, the broader software-as-a-service, or SaaS, sector is feeling the heat from new AI advancements. A group of SaaS stocks tracked by Morgan Stanley is now down 15% so far this year alone, building on an 11% decline witnessed throughout 2025. This sustained downturn indicates a deep-seated concern among investors that emerging AI tools could fundamentally alter the landscape for traditional software makers. It’s a clear signal that the market is aggressively repricing the value of these companies against the backdrop of accelerated AI innovation, forcing them to rapidly adapt or face continued pressure. Read more
- Shifting gears within the tech world, Advanced Micro Devices, or AMD, is showing strong analyst sentiment, with 75% of analysts now bullish on the semiconductor giant. This positive outlook comes on the heels of AMD’s AI processor launches at CES, positioning the company as a strong contender in the artificial intelligence chip space, despite robust competition from Nvidia. Analysts, including Jefferies, are reinforcing this positive trend, with a consensus price target of $281.50, implying a substantial 38.60% upside from current levels. Investors will be watching closely to see if AMD can leverage its new AI offerings to capture significant market share and meet these lofty analyst expectations. Read more
Keywords: ADBE, AI chips, AI disruption, AI fears, AMD, Analyst rating, Anthropic, Bullish sentiment, CES, CRM, INTU, Market downturn, Morgan Stanley, Price target, SaaS sector, Semiconductors, Software stocks, Software-as-a-service, Stock plunge, Technology trends