Why the "Great Repricing" of AI Software Stocks Is a Gift for Long-Term Investors
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By Anders Bylund – Apr 28, 2026 at 5:29PM ESTKey PointsAtlassian, C3.ai, and SoundHound AI have all dropped more than 50% in six months.The market fears that all-in-one AI platforms will make traditional software obsolete.SoundHound AI's specialized voice technology isn't something general-purpose chatbots can easily replicate.If you own software stocks, the stock market hasn't been much fun in recent times. As of April 27, Atlassian (TEAM +0.68%) is down 58% over the last six months. C3.ai (AI +2.05%) dropped 52%. SoundHound AI (SOUN 1.23%) took a 55% price cut. The market has decided that I-can-do-everything artificial intelligence (AI) platforms are coming for these companies, and investors are not waiting around to see how things play out. Here's the thing: The market might be overreacting. Not just a little. I mean, a whole lot. ExpandNASDAQ: SOUNSoundHound AIToday's Change(-1.23%) $-0.10Current Price$8.06Key Data PointsMarket Cap$3.5BDay's Range$7.90 - $8.2252wk Range$5.83 - $22.17Volume19MAvg Vol27MGross Margin32.96% The Great Repricing The thesis behind the sell-off is straightforward: AI will commoditize software. In particular, generative AI will eat the current software industry. Why pay Atlassian for project management when an AI agent can just...manage projects? Why license a next-generation database when AI can conjure data from the ether? The logical endpoint of this thinking is that every software-as-a-service (SaaS) company becomes obsolete, replaced by a single prompt box that does everything. That single system might get expensive, but that's OK as long as it can replace a plethora of older software solutions. Image source: Getty Images. Investors, not wanting to be the last ones holding the bag, have fled. Money rotated into AI infrastructure (memory-chip maker Micron Technology (MU 3.82%) gained 154% over the same period while chip titan Intel (INTC 0.55%) rose 130%) and out of anything that looked like it might be on the hungry AI monster's menu. SaaS valuations collapsed. The baby went out with the bathwater, and the bathwater went out with the tub. ExpandNASDAQ: MUMicron TechnologyToday's Change(-3.82%) $-20.05Current Price$504.51Key Data PointsMarket Cap$592BDay's Range$488.25 - $518.7752wk Range$73.50 - $531.36Volume1.6MAvg Vol42MGross Margin58.54%Dividend Yield0.09% Why reports of their death are exaggerated AI will absolutely change the software industry. But it won't vaporize companies that are building durable competitive advantages. Consider what these beaten-down names actually offer: Atlassian isn't waiting around to be disrupted. It's baking AI into Jira and Confluence, making its project management and collaboration tools smarter rather than obsolete. More importantly, try telling a 10,000-person engineering org to switch project management systems. You'll need more than a clever chatbot to pull that one off. C3.ai is in the business of helping enterprises deploy AI. The "AI will kill software" narrative doesn't land when your software is AI infrastructure. That's like saying cars will kill the highway system. If anything, C3.ai should thrive as enterprise-scale AI takes off. SoundHound AI builds voice AI for drive-thrus, phone menus, and car dashboards. This market isn't something ChatGPT is coming for; it's specialized, real-time, edge-deployed tech with actual paying customers. The market is treating these stocks like the generative AI disruption has already happened. It hasn't. What has happened is that you can now buy these growth stories at half price or less. The businesses haven't changed; the sentiment has. That's not a crisis. It's a clearance sale. I recommend taking another look at the best SaaS names while they're trading on the cheap. All three are top-notch ideas, but I would honestly check out SoundHound AI first.Read NextApr 28, 2026 •By Anthony Di PizioShould You Buy SoundHound AI Stock Before May 7?
The Answer Might Surprise You.Apr 25, 2026 •By Leo SunSoundHound AI: Could the Stock 10X by 2030?Apr 24, 2026 •By Jack DelaneyIs SoundHound AI's Latest Acquisition a Game Changer for the Stock?Apr 24, 2026 •By Rick OrfordIs SoundHound Stock a Buy, Sell, or Hold After This New Deal?Apr 22, 2026 •By Harsh ChauhanThe Best Artificial Intelligence (AI) Stocks to Buy With $1,000 Right NowApr 21, 2026 •By Josh Kohn-LindquistStock Market Today, April 21: SoundHound AI Falls After Announcing All-Stock LivePerson AcquisitionAbout the AuthorAnders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.TMFZahrimX@TMFZahrimStocks MentionedSoundHound AINASDAQ: SOUN$8.06(-1.29%)-$0.11IntelNASDAQ: INTC$84.52(-0.55%)-$0.47Micron TechnologyNASDAQ: MU$504.51(-3.82%)-$20.05AtlassianNASDAQ: TEAM$69.69(+0.68%)+$0.47C3.aiNYSE: AI$8.97(+2.05%)+$0.18*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.