FRANKFURT/NEW YORK (dpa-AFX) - Investors in certain technology sectors are growing increasingly anxious about competition from artificial intelligence. Shares in software giant SAP remain under pressure, making it the weakest performer in the DAX index in 2026, with losses exceeding 20 percent. This was compounded on Wednesday by a further drop of nearly three percent for the DAX heavyweight.
Sentiment toward software stocks has turned negative this year. Commerzbank noted Wednesday morning that investors are concerned about the introduction of new AI tools and their potential to disrupt traditional business models.
These concerns also weighed heavily on shares of data information service providers such as Relx and Wolters Kluwer the previous day, with no signs of recovery. Shares in the London Stock Exchange also continued their downward trajectory.
"We are in an environment where the sector is being condemned before the actual trial begins," JPMorgan analyst Toby Ogg wrote Wednesday, referring to software and IT. Better-than-expected results from individual companies are currently no longer sufficient to convince the market positively. "Unless it can be irrefutably proven that AI is a sustainable growth engine, and not a long-term growth inhibitor," he added.
According to Ogg, the pessimistic outlook is multifaceted. Even internet stocks such as Auto1 or Scout24 are not immune to these concerns, as evidenced by the latter hitting its lowest point since September 2024.
The JPMorgan analyst pointed to the "cannibalization" of market share, new competition from new solutions, and risks during the transition to new revenue models. He stressed that "defense on many fronts" is necessary, making the process even more challenging.
On Wednesday, shares in IT consulting firms such as Adesso, Nagarro, and Cancom were also affected, with declines between 2.6 and 3.7 percent.
Nagarro's shares were further hit by the withdrawal of a previously optimistic rating by investment bank Oddo BHF. Oddo BHF has now upgraded Bechtle, resulting in the MDAX member's shares faring relatively well on Wednesday, down just 0.9 percent./tih/mne/mis
