AI's Looming Headwind: BoA Warns Software Stocks Face Generational Threat

Bank of America warns that artificial intelligence poses a generational threat to software stocks, citing Anthropic’s rapid ARR growth and a recent funding round that valued the startup at about $380B, which led BoA to cut price targets on European software names like SAP and ASML. The note suggests AI could squeeze profits for major software players such as Salesforce, Adobe, and Microsoft, as the sector remains under pressure even as some see potential upside from AI adoption.