Software’s Little Dip (and My Anxiety)

My uncle, bless his heart, called last week. He’d read something about “AI eating software” and was convinced Microsoft was about to be replaced by a particularly aggressive chatbot. He wanted my opinion, which is always a mistake. I told him it was probably fine, but then spent the next three hours staring at stock charts, convinced he was right. It’s a pattern. I worry, then I research, then I worry more.

Apparently, everyone else had a similar panic. Software stocks, the ones that were already teetering on the edge of “expensive,” took a bit of a tumble. Something about Anthropic’s Claude Code threatening to make Excel obsolete. Honestly, I can barely open Excel, so the idea of it being replaced feels… liberating. But the market, of course, doesn’t work like that.

Jensen Huang and the Art of Self-Preservation

Then, Nvidia’s Jensen Huang, a man who looks like he hasn’t slept since 1998, gave an interview. He said the market had it wrong. That software companies would use this “Agentic AI” to… improve things. It felt a bit like the plumber telling you the leak is actually a “feature.” Of course he said that. He sells the things that power the AI. It’s like asking a fox to critique the chicken coop.

He also mentioned Excel again, as if that program wasn’t already a monument to frustration and conditional formatting. The idea that AI will just… use Excel, feels less like innovation and more like outsourcing your problems to a slightly more efficient version of yourself. It’s unsettling.

Two Ways to Maybe Not Lose Everything

So, naturally, everyone started looking for a lifeboat. I’m not a financial advisor, I just spend an unhealthy amount of time reading about them. But two things seemed… less terrible than the rest. It’s like choosing between two shades of beige.

First, there’s the iShares Expanded Tech-Software Sector ETF (IGV). It’s basically a basket of software companies, which is a bit like putting all your eggs in a slightly less fragile basket. It’s down, yes, but it includes Microsoft, Palantir, and Salesforce. I don’t understand what Palantir does, exactly, but it sounds ominous and expensive.

It’s still overpriced, let’s be honest. Everything is. But it’s a way to spread the risk, which is just a fancy way of saying “delay the inevitable.”

Then there’s Microsoft. They’re down too, despite being involved in everything from cloud computing to video games. It’s like they’re trying to diversify their way out of a bad situation. Which, frankly, feels relatable. They have Azure, Windows, Xbox, LinkedIn, even Bing. It’s a sprawling, messy empire, but it seems… resilient.

They’re trading at a reasonable price, comparatively. Which is like saying one brand of bottled water is less expensive than another. It doesn’t make it a good deal, but it feels slightly less painful. I suspect it will be fine. But then again, I also suspect my uncle’s chatbot obsession is a symptom of a larger existential dread. And I’m not qualified to address either.

2026-02-27 10:02

Jensen Huang and the Art of Self-Preservation

Two Ways to Maybe Not Lose Everything

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