Top Software Stocks to Buy Now as AI Fears Fade

Leading platforms like AppLovin, Palantir, Salesforce, ServiceNow, and Robinhood trade near cyclical lows despite strong fundamentals

Published on Feb. 10, 2026

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Software stocks have been hit hard in recent months as investor concerns around artificial intelligence and large language models intensified. However, the market may be overstating the speed and severity of disruption, particularly for industry leaders with entrenched platforms, strong balance sheets, and durable demand. Valuations across several premier software franchises have reset to levels rarely seen over the past decade, improving the risk-reward profile for long-term investors. Stocks like AppLovin, Palantir Technologies, Salesforce, ServiceNow, and Robinhood Markets stand out as compelling candidates for deeper consideration.

Why it matters

The recent software selloff has created rare buying opportunities for investors in high-quality growth stocks. While AI introduces legitimate uncertainty, the market may be overreacting, and valuations for leading platforms have reset to attractive levels not seen in years. Selectively accumulating fundamentally strong names during periods of dislocation has historically proven to be a winning strategy.

The details

Software stocks, long viewed as some of the market's most attractive business models, have been hit hard in recent months as investor concerns around artificial intelligence and large language models intensified. The selloff has been significant, with the iShares Expanded Tech-Software Sector ETF, a widely followed proxy for the software space, falling more than 20% over that stretch. The fear is that AI will materially disrupt traditional software economics. While that risk is real, expectations appear to have moved too far, too fast. AI is likely to reshape parts of the software landscape, but it is unlikely to render entire categories obsolete.

  • The software selloff has occurred over the past few months.
  • The iShares Expanded Tech-Software Sector ETF has fallen more than 20% during this period.

The players

AppLovin

An industry-leading digital advertising platform that has quietly developed into one of the market's more compelling growth stories.

Palantir Technologies

A world-leading software company with deep, long-duration government contracts and a suite of highly differentiated data and analytics platforms.

Salesforce

One of the original SaaS pioneers and a dominant force in enterprise software, with expanding AI and large language model initiatives, deep integration across enterprise workflows, and consistently strong fundamentals.

ServiceNow

A market-leading, cloud-based workflow platform that is deeply embedded across large enterprises, serving roughly 85% of the Fortune 500 and about 60% of the Global 2000.

Robinhood Markets

A fintech platform that has evolved into one of the market's more compelling digital financial businesses, with a multi-product offering spanning trading, wealth management, banking, and credit cards.

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What they’re saying

“Periods of broad pessimism often create the most attractive entry points for high-quality growth stocks, and the recent software correction appears to be one of those moments.”

— Zacks Equity Research (zacks.com)

The takeaway

The recent software selloff has created rare buying opportunities for investors in high-quality growth stocks. While AI introduces legitimate uncertainty, the market may be overreacting, and valuations for leading platforms have reset to attractive levels not seen in years. Selectively accumulating fundamentally strong names during periods of dislocation has historically proven to be a winning strategy.