Investors Sell Stocks on AI Disruption Fears

Financial, software, and legal services companies hit as investors worry about AI's impact

Published on Feb. 11, 2026

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Investors have been selling shares of companies in the financial, software, and legal services sectors due to fears of AI disruption. This week, financial firms like Charles Schwab and LPL Financial saw their stocks decline, while the SPDR S&P Software & Services and Financial Select Sector SPDR ETFs are down significantly year-to-date. The perception of AI-related disruption, whether real or exaggerated, has led to what some analysts call "indiscriminate selling" and "mispricing" of certain stocks.

Why it matters

The volatility caused by AI disruption fears has interrupted rallies in the broader market, with the S&P 500 and Nasdaq moving in "fits and starts." Analysts say some stocks have been unfairly penalized as investors overreact to the perceived threat of AI, even in cases where the actual impact may be overstated or play out over a longer timeline than anticipated.

The details

Recent developments, like Anthropic's unveiling of an AI model for financial analysis and Altruist's launch of an AI-powered tax planning tool, have fueled investor concerns about AI's potential to disrupt various industries. This has led to sell-offs in financial, software, and legal services companies, with the SPDR S&P Software & Services and Financial Select Sector SPDR ETFs down significantly year-to-date.

  • This week, financial firms like Charles Schwab and LPL Financial saw their stocks decline.
  • Last week, software and legal services companies were hit by AI disruption fears.

The players

Anthropic

An artificial intelligence company that unveiled an AI model it said would be better at tasks including financial analysis, research, and work involving spreadsheets.

Altruist

A tech platform that launched an AI-powered tax planning tool.

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What’s next

Analysts across various firms are picking through their coverage universes to find stocks that have been "mispriced" due to overreaction to AI disruption fears, and are recommending them as buying opportunities.

The takeaway

The volatility caused by perceived AI disruption risks has led to indiscriminate selling of stocks, even in cases where the actual impact may be overstated or play out over a longer timeline. This has created opportunities for investors to identify and potentially capitalize on "mispriced" stocks as the market overreacts to the threat of AI.