Tech analyst Dan Ives argues that the recent sell-off in major software stocks is disconnected from business fundamentals. Despite share price declines, Microsoft, ServiceNow, and Salesforce are reporting strong revenue growth and momentum in AI-related products. While heavy AI infrastructure spending and potential competition from AI agents pose near-term headwinds, analysts maintain long-term earnings growth estimates, suggesting the sell-off presents a buying opportunity.
Axe note: Strong earnings and AI momentum contrast sharply with recent heavy selling in top software names.