Shares of software and data analytics companies investing in AI in Europe are experiencing a sharp sell-off. “AI adopters” such as SAP, Dassault Systemes, LSEG, Sage, and Capgemini have lost between 10% and 14% of their value since mid-July.
This decline has accelerated with the release of increasingly powerful models such as OpenAI’s GPT-5 and Anthropic’s Claude for Financial Services.
Investors believe that these companies’ business models may be threatened because each new version is many times more capable than the previous generation.
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[…] In contrast, US indices hit record highs with technology stocks, with the FTSE 100 rising 2.5% and the STOXX 600 rising 0.6%. However, European software stocks, which trade with high price-to-earnings ratios, are more vulnerable to negative news. For example, SAP fell 7.2% following its latest quarterly results, experiencing its sharpest daily loss since 2020.]
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[…] Analysts note that the question of “Will AI eat software?” is back on the agenda. Some argue that companies offering solutions that are deeply integrated into customer workflows or possessing unique data still have an advantage. However, there is a warning that simply possessing data may no longer provide sufficient protection.
According to experts, the current wave of selling could be an opportunity to select long-term winners. However, for AI investments to become profitable, firms will need to prove themselves over time.
According to experts, the current wave of selling could be an opportunity to select long-term winners. However, for AI investments to become profitable, firms will need to prove themselves over time.
