Investors Hunting for Next AI Disruption Victims

Market sell-off spreads from software to wealth managers, data providers, and transport firms as AI start-ups disrupt industries.

Published on Feb. 16, 2026

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Investors are rushing to identify companies whose business models are set to be disrupted by artificial intelligence or whose margins will be severely eroded by new AI-powered competition. The sell-off that began in the software sector has gradually spread to other industries like wealth management, data providers, property services, and transportation. The paradox is that while the existence of an AI bubble has been debated for months, AI is now rapidly devaluing entire sectors as the market seeks to anticipate the future impact.

Why it matters

The current market dynamics highlight the disruptive power of AI technology and the speed at which it can upend established business models across multiple industries. As AI capabilities continue to advance, investors are becoming increasingly wary of companies that may be vulnerable to AI-driven disruption, leading to sharp corrections in valuations even before any actual decline in revenues or earnings.

The details

The sell-off has hit the software sector particularly hard, with companies like Dassault Systèmes seeing their valuation multiples plummet from 90 times earnings in 2021 to just 19 times currently. Investors are now widening their hunt to other industries, including wealth managers, data providers, property services firms, and transport operators, as the slightest announcement of a new AI feature can send an entire sector tumbling.

  • The market sell-off began in the software sector and has gradually spread to other industries over the past few months.
  • Wall Street is closed today for the Presidents' Day holiday in the United States.
  • Mainland Chinese markets will remain shut all week for Lunar New Year festivities, reopening only on Tuesday, February 24.
  • Hong Kong will close for three days, from February 17 to 19.

The players

Dassault Systèmes

A French software company whose valuation multiple has fallen from 90 times earnings in 2021 to just 19 times currently due to the impact of AI on the software industry.

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What’s next

Investors will be closely watching the Federal Reserve minutes on Wednesday and the release of US fourth-quarter GDP and December PCE inflation data on Friday for further insights into the economic outlook and the potential impact on various industries.

The takeaway

The rapid devaluation of companies across multiple sectors due to the disruptive potential of AI technology highlights the need for investors to carefully assess a company's vulnerability to AI-driven disruption, even if its current financial performance remains strong. This dynamic underscores the importance of staying ahead of technological shifts and their implications for various industries.