{"id":80515,"date":"2026-02-08T00:29:02","date_gmt":"2026-02-08T03:29:02","guid":{"rendered":"https:\/\/tech.einnews.com\/article\/890411793"},"modified":"2026-02-08T00:29:02","modified_gmt":"2026-02-08T03:29:02","slug":"the-dark-side-of-ai-weighs-on-the-stock-market-after-tech-plunge","status":"publish","type":"post","link":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/2026\/02\/08\/the-dark-side-of-ai-weighs-on-the-stock-market-after-tech-plunge\/","title":{"rendered":"The dark side of AI weighs on the stock market after tech plunge"},"content":{"rendered":"<div data-testid=\"ad-sticky-container\" class=\"sc-dfb011b6-0 dncfJv\">\n<div class=\"container\"><\/div>\n<\/div>\n<header class=\"sc-12aa4a36-0 gQVHPI\">\n<div class=\"sc-5cbbddda-0 cRMyzw\">\n<div data-testid=\"article-author\" class=\"sc-5cbbddda-1 kekTYX\">\n<div>\n<p><span class=\"sc-5cbbddda-4 bILnXn\">Mike Isaac<\/span>, <span class=\"sc-5cbbddda-4 bILnXn\">Joe Rennison<\/span> and <span class=\"sc-5cbbddda-4 bILnXn\">Maureen Farrell<\/span><\/p>\n<p data-testid=\"article-datetime\" class=\"sc-5cbbddda-5 jMFiFd\"><span class=\"sc-a243f860-0 dLDTDi\"><time data-testid=\"storytile-timestamp\" datetime=\"2026-02-08T13:24:09+10:00\">February 8, 2026<!-- --> \u2014 1:24pm<\/time><\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"sc-7132c98c-0 hMrcSL noPrint\" data-testid=\"article-actions\">\n<div class=\"sc-7132c98c-1 cbqDrw\">\n<div class=\"sc-f9e3ccff-0 cGFoDo\"><button aria-label=\"Save article to read later\" role=\"switch\" type=\"button\" class=\"sc-f9e3ccff-1 bDLMyZ\"><span class=\"sc-f9e3ccff-2 bBuibL\">Save<\/span><\/button><\/p>\n<div aria-hidden=\"true\" class=\"sc-ba6ddcd9-0 bnZsbn sc-d1b14060-3 bnLMbo\" role=\"tooltip\">\n<p class=\"sc-d1b14060-4 NcyxX\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.brisbanetimes.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 kfUMNO ivkaTQ\">saved list<\/a> to add more.<\/p>\n<\/div>\n<div aria-hidden=\"true\" class=\"sc-ba6ddcd9-0 dpTpUw sc-369d9219-0 ipWbwh\" role=\"tooltip\">\n<p class=\"sc-369d9219-1 eGTSJh\">Save this article for later<\/p>\n<p class=\"sc-369d9219-2 crcSSW\">Add articles to your saved list and come back to them anytime.<\/p>\n<p><button type=\"button\" class=\"sc-3f16ee48-0 sc-3f16ee48-6 sc-369d9219-3 dXbfCd eAOsPn gxYZHU\">Got it<\/button><\/div>\n<\/div>\n<p><button aria-label=\"Set font size to normal\" class=\"sc-f7fd8257-1 ixzFNX\">A<\/button><button aria-label=\"Set font size to larger\" class=\"sc-f7fd8257-1 erDYvl\">A<\/button><button aria-label=\"Set font size to very large\" class=\"sc-f7fd8257-1 erEaaR\">A<\/button><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/header>\n<aside class=\"sc-67b869c7-6 cFwlqx\"><\/aside>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>A washout in the stocks of software companies has been flowing through Wall Street this week, as investors realised the threat that artificial intelligence will displace businesses had arrived.<\/p>\n<p>While the prospect of AI disruptions has hung over the economy for years, a new set of tools released this week by a San Francisco start-up forced a sudden reckoning on Wall Street.<\/p>\n<figure class=\"sc-4820f69c-1 fhsnES\"><button aria-label=\"enlarge image\" type=\"button\" class=\"sc-4820f69c-5 bsFdcS\"><\/p>\n<div class=\"sc-d34e428-0 bXqpHm\"><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Anthropic\u2019s Claude app. A new set of tools released by the company last week sent tech stocks plunging.\" loading=\"lazy\" fifu-data-src=\"https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.378%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ead7bba534921a591b359bd0795bc9730d0915f7?ssl=1\" class=\"sc-d34e428-1 bnWZMz\"><\/div>\n<p><\/button><figcaption data-testid=\"figure-caption\" class=\"sc-4820f69c-0 hMRMLa\"><span>Anthropic\u2019s Claude app. A new set of tools released by the company last week sent tech stocks plunging.<\/span><cite class=\"sc-4820f69c-2 jnumBu\"><span class=\"sc-4820f69c-3 jkEJCb\">Bloomberg<\/span><\/cite><\/figcaption><\/figure>\n<p>Software companies most at risk from the new tools were the hardest hit, as well as the investment funds that lend to these companies. But the sell-off helped push down the broader market. On Thursday, the S&amp;P 500 turned negative for the year after falling on six of the past seven days. But it rebounded the next day, rising 1.5 per cent.<\/p>\n<p>AI has been like rocket fuel for stocks, driving prices to record highs in recent years. Since October, though, that exuberance has been fading, as some realities of this transformative technology have begun to sink in.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>Not only are investors growing worried that AI could render certain businesses obsolete, they are also questioning the growing piles of money that companies are spending on AI. On Thursday, investors were spooked by Amazon\u2019s revelation that it planned to spend $US200 billion ($285 billion) on AI and other large investments this year, exceeding analysts\u2019 predictions by $US50 billion; shares fell 7 per cent on Friday.<\/p>\n<p>Last week, Google\u2019s parent Alphabet said it would spend as much as $US185 billion this year, and last week Meta said its capital expenses, in large part to support AI, could reach $US135 billion.<\/p>\n<p>In the software sector, the catalyst for the sell-off was the release on Tuesday by San Francisco-based artificial intelligence firm Anthropic of free plug-in software tools that allow companies to automate functions like customer support and legal services.<\/p>\n<p>Because they were created as \u201copen source\u201d software, any company can download the tools without paying for them. These plug-ins could replace the tools that companies currently sell to businesses.<\/p>\n<p>Another area vulnerable to AI are providers of software-as-a-service, or SaaS, a mode of delivering subscription-based computer programs over the internet instead of buying and installing them locally on one\u2019s computer. New, free software models from AI companies have the potential to replace not only the SaaS business model but also much of the workforce behind it.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>\u201cThere have been a number of these big sell-offs of these SaaS stocks over the past few years as these software models have rolled out,\u201d Open AI CEO Sam Altman said in an interview with TBPN, a tech-focused streaming show. \u201cI expect there will be more.\u201d<\/p>\n<aside data-testid=\"related-story\" class=\"sc-4dc7bff5-0 dRSyuL\">\n<h2 data-testid=\"related-story-heading\" class=\"sc-4dc7bff5-1 fBLKVA\">Editor&#8217;s pick<\/h2>\n<div data-an-position=\"1\" data-testid=\"story-tile\" class=\"sc-679b6ed4-0 cMGLSH\">\n<figure class=\"sc-8825a2fb-0 hUTlgn\"><a href=\"https:\/\/www.brisbanetimes.com.au\/business\/markets\/asx-set-to-slide-as-wall-street-falls-bitcoin-tumbles-20260206-p5o00u.html\" class=\"sc-cba76dee-0 hLTVHY\"><\/p>\n<div class=\"sc-d34e428-0 bXqpHm\"><img data-opt-id=758893364  fetchpriority=\"high\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Wall Street was weighed down by Alphabet as AI concerns continue to leave investors uncertain.\" loading=\"lazy\" fifu-data-src=\"https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_0.5602%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_0%2C$y_21\/t_crop_custom\/q_86%2Cf_auto\/a0715578adbd6e1851560a5b2b28717daa6cff76?ssl=1\" class=\"sc-d34e428-1 jiJqza\"><\/div>\n<p><\/a><\/figure>\n<\/div>\n<\/aside>\n<p>Analysts have taken to calling the broad sell-off the \u201cSaaSpocalypse\u201d.<\/p>\n<p>Shares of companies like LegalZoom, LexisNexis and Thomson Reuters, which offer legal services and research, dropped as much as 20 per cent over the past week. They had mixed recoveries after their drop.<\/p>\n<p>Shares of Salesforce, which produces SaaS and customer relationship management software for sales workers, have fallen 25 per cent over the past month.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>Even companies catering to the arts have been hit. Shares in Adobe and Figma, which produce tools for artists, fell 9 per cent and 17 per cent over the past week, driven by fears that many of the bread-and-butter design tools they provide to creative workers could eventually be automated.<\/p>\n<p>The fervour for AI is not just affecting the software industry. The surge in AI spending has generated enormous demand for random-access memory, or RAM, a kind of chip required to produce the AI hardware built by these companies.<\/p>\n<figure class=\"sc-4820f69c-1 fhsnES\"><button aria-label=\"enlarge image\" type=\"button\" class=\"sc-4820f69c-5 bsFdcS\"><\/p>\n<div class=\"sc-d34e428-0 bXqpHm\"><img data-opt-id=758893364  decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Shares of Salesforce, which produces SaaS and customer relationship management software for sales workers, have fallen 25 per cent over the past month.\" loading=\"lazy\" fifu-data-src=\"https:\/\/i2.wp.com\/static.ffx.io\/images\/$zoom_0.189%2C$multiply_0.7725%2C$ratio_1.5%2C$width_756%2C$x_0%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/6ed5d06c4e727823da22b7f5b0a555923968b4ed?ssl=1\" class=\"sc-d34e428-1 bnWZMz\"><\/div>\n<p><\/button><figcaption data-testid=\"figure-caption\" class=\"sc-4820f69c-0 hMRMLa\"><span>Shares of Salesforce, which produces SaaS and customer relationship management software for sales workers, have fallen 25 per cent over the past month.<\/span><cite class=\"sc-4820f69c-2 jnumBu\"><span class=\"sc-4820f69c-3 jkEJCb\">Bloomberg<\/span><\/cite><\/figcaption><\/figure>\n<p>On Wednesday, Qualcomm, which makes microprocessors for smartphones and computers that require RAM, said it faced uncertainty around how much demand it would have for its chips over the next two years. That is, in part, because the skyrocketing cost of memory could dampen consumer demand for new devices. Shares of Qualcomm are down about 20 per cent this year.<\/p>\n<p>Software companies have also been a favourite target of lenders of private credit, because the companies\u2019 subscription-based business model provides a stable stream of income to support taking on more debt.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>Private credit deals, as the name suggests, are not public, but the loans held by related business development companies, or BDCs, are seen as a proxy for the industry.<\/p>\n<p>Roughly half the software debt held by BDCs, equal to about $US45 billion, comes due in 2030 or later, according to analysts at Barclays, raising worries about the length of time until these loans are repaid. The more time a borrower has to repay a loan, the more time there is for the borrower to default \u2014 or, in this case, the more time for a business to be displaced by AI.<\/p>\n<p>An exchange-traded fund run by VanEck that contains holdings in many of the major BDCs is down about 6 per cent this year and more than 20 per cent over the past 12 months.<\/p>\n<p>Even as Ares Management and Blue Owl Capital \u2014 two of the largest private-credit firms \u2014 reported results that Wall Street analysts largely applauded, the two companies couldn\u2019t escape investors\u2019 worries about AI disruption. Shares of Ares have fallen more than 20 per cent this year and Blue Owl\u2019s have fallen over 16 per cent.<\/p>\n<p>On an analyst call Thursday, Blue Owl CEO Marc Lipschultz denied that AI posed a threat to its lending business.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>\u201cWe don\u2019t have red flags, and, point of fact, we don\u2019t have yellow flags. We actually have largely green flags,\u201d Lipschultz said.<\/p>\n<aside data-testid=\"related-story\" class=\"sc-4dc7bff5-0 dRSyuL\">\n<h2 data-testid=\"related-story-heading\" class=\"sc-4dc7bff5-1 fBLKVA\">Editor&#8217;s pick<\/h2>\n<div data-an-position=\"1\" data-testid=\"story-tile\" class=\"sc-679b6ed4-0 cMGLSH\">\n<figure class=\"sc-8825a2fb-0 hUTlgn\"><a href=\"https:\/\/www.brisbanetimes.com.au\/technology\/why-elon-musk-just-created-a-1-8-trillion-space-monster-20260204-p5nzdj.html\" class=\"sc-cba76dee-0 hLTVHY\"><\/p>\n<div class=\"sc-d34e428-0 bXqpHm\"><img data-opt-id=758893364  decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" fifu-lazy=\"1\" fifu-data-sizes=\"auto\" fifu-data-srcset=\"https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=75&resize=75&ssl=1 75w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=100&resize=100&ssl=1 100w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=150&resize=150&ssl=1 150w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=240&resize=240&ssl=1 240w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=320&resize=320&ssl=1 320w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=500&resize=500&ssl=1 500w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=640&resize=640&ssl=1 640w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=800&resize=800&ssl=1 800w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=1024&resize=1024&ssl=1 1024w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=1280&resize=1280&ssl=1 1280w, https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1&w=1600&resize=1600&ssl=1 1600w\" alt=\"Elon Musk is known for his outlandish plans.\" loading=\"lazy\" fifu-data-src=\"https:\/\/i1.wp.com\/static.ffx.io\/images\/$zoom_1%2C$multiply_0.5127%2C$ratio_1.777778%2C$width_1059%2C$x_37%2C$y_0\/t_crop_custom\/q_86%2Cf_auto\/ea8c620eab78ddc6bbb27ec3bb33abd0e483c98f?ssl=1\" class=\"sc-d34e428-1 jiJqza\"><\/div>\n<p><\/a><\/figure>\n<\/div>\n<\/aside>\n<p>Blue Owl chief financial officer Alan Kirshenbaum attributed the company\u2019s challenges to \u201cheadwinds in private credit, AI, software\u201d, as well as investors who want some of their money back.<\/p>\n<p>Analysts could find little to worry about in the firm\u2019s results.<\/p>\n<p>\u201cIf you took the name off the top of the release and ripped through the details, you\u2019d think that\u2019s a pretty darn good quarter,\u201d Evercore ISI analyst Glenn Schorr wrote in a note late last week.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div class=\"sc-80607c67-0 gdRzoe\">\n<p>Bitcoin, a retail-dominated market that tends to swing with some of the popular stock trades, also skidded, sliding as low as $US60,000, its lowest level since October 2024, before rising back towards $US70,000.<\/p>\n<p>On Wednesday, US Treasury Secretary Scott Bessent said during a congressional hearing that the government had no power to order banks to buy bitcoin in order to stem the price decline.<\/p>\n<p>As investors dial down their exposure to the more speculative bets like bitcoin and AI-related stocks, they are shifting towards previously unloved sectors that are seen as better insulated through periods of volatility.<\/p>\n<p>So far this year, energy stocks, consumer staples and the materials sector have all gained over 10 per cent while tech has languished.<\/p>\n<p>\u201cAfter years of tech-driven market leadership, the balance of power is shifting as investors rotate toward traditional \u2018old economy\u2019 sectors,\u201d said Angelo Kourkafas, a strategist at fund manager Edward Jones.<\/p>\n<\/div>\n<div class=\"container\"><\/div>\n<div data-testid=\"article-footer\" class=\"sc-780f6c39-0 gMidPz\">\n<div class=\"sc-780f6c39-1 bXzMFW noPrint\">\n<div class=\"sc-780f6c39-2 fDvLNJ\">\n<div class=\"sc-f9e3ccff-0 cGFoDo sc-780f6c39-3 csnzsK\"><button aria-label=\"Save article to read later\" role=\"switch\" type=\"button\" class=\"sc-f9e3ccff-1 bDLMyZ\"><span class=\"sc-f9e3ccff-2 bBuibL\">Save<\/span><\/button><\/p>\n<div aria-hidden=\"true\" class=\"sc-ba6ddcd9-0 BgjOX sc-d1b14060-3 bnLMbo\" role=\"tooltip\">\n<p class=\"sc-d1b14060-4 NcyxX\">You have reached your maximum number of saved items.<\/p>\n<p>Remove items from your <a href=\"https:\/\/www.brisbanetimes.com.au\/goodfood\/saved\" class=\"sc-3f16ee48-12 sc-d1b14060-2 kfUMNO ivkaTQ\">saved list<\/a> to add more.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<section class=\"sc-3dbe4134-0 eKUqbd sc-df8e6ee0-0 noPrint\" data-an-name=\"From our partners\" data-an-cu-group=\"everything\" data-an-cu-name=\"From our partners\" data-an-cu-position=\"4\" data-testid=\"from-our-partners-strap\">\n<header class=\"sc-84567ec1-0 ea-dUAB\">\n<h2 data-pb-type=\"hi\" class=\"sc-84567ec1-1 UmHhJ\"><span>From our partners<\/span><\/h2>\n<\/header>\n<div class=\"sc-df8e6ee0-1 dKvVOU\">\n<div class=\"container\"><\/div>\n<div class=\"container\"><\/div>\n<\/div>\n<\/section>\n<p><strong><a href=\"https:\/\/blockads.fivefilters.org\"> <\/a><\/strong> <a href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\"> <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8230; company last week sent <span class=\"match\">tech<\/span> stocks plunging.BloombergSoftware companies &#8230; some realities of this transformative <span class=\"match\">technology<\/span> have begun to sink &#8230; an interview with TBPN, a <span class=\"match\">tech<\/span>-focused streaming show. \u00e2\u0080\u009cI &#8230; over 10 per cent while <span class=\"match\">tech<\/span> has languished. \u00e2\u0080\u009cAfter years &#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-80515","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/80515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/comments?post=80515"}],"version-history":[{"count":0,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/posts\/80515\/revisions"}],"wp:attachment":[{"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/media?parent=80515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/categories?post=80515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new7.shop\/zerocostfreehost\/index.php\/wp-json\/wp\/v2\/tags?post=80515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}