As the 'AI panic trade' continues to intensify, US stock software shares have underperformed in recent weeks. Since the beginning of 2026, the sector has lost approximately $2 trillion in market capitalization, causing tech giant stock prices to decline and reducing the software industry's weighting in the S&P 500 index. The Relative Strength Index (RSI) of the S&P 500 Software & Services Index has fallen to its lowest level since the end of the dot-com bubble burst. JPMorgan believes the market's reaction is overblown and argues that for investors willing to tune out the noise, this could be one of the best opportunities to invest in quality software companies. The firm points out that the market is pricing in a disaster that may not occur for several years, noting that AI will not fully replace enterprise software until at least after 2028. Currently, these tools only serve to assist workflows, and the timeline set by investors is unrealistic.