Software Stocks Fall Again Amid Anthropic Enterprise Push. Trump Praises Palantir.

Software stocks plummeted Friday as investors feared AI giants OpenAI and Anthropic would disrupt traditional enterprise software markets with advanced AI-driven alternatives. Anthropic’s aggressive push into enterprise solutions intensified competition, triggering sell-offs in legacy software firms already struggling to adapt to AI-first business models. Former President Trump publicly praised Palantir, highlighting its AI and data analytics dominance, which contrasted sharply with broader sector declines. The downturn reflects growing concerns that foundational AI models could replace entire software categories, accelerating industry consolidation and forcing incumbents to pivot or risk obsolescence. Analysts warn the trend may persist as AI-native companies capture market share, reshaping the tech landscape beyond traditional software boundaries.