Software stocks are back from the dead as AI fuels growth: can the rally continue?

Earlier this year, a fear psychosis had gripped investors that advances in AI would replace software firms, and the sector was all but written off. Anthropic's launch of new plugins for its Claude Cowork system in February sparked a global selloff in software firms, with the US markets alone losing $300 billion in market value in a day. The pressure did not leave the sector for a while, and a new phrase called 'SaaSpocalypse' started being circulated, signaling the imminent doom of the software sector. However, the latest earnings season has shown that software companies are not going anywhere. Ironically, AI, which had seemed to sound the sector's death knell, is helping the industry rewrite its next growth story. Late...