We came across a bullish thesis on Reddit, Inc. on Value investing subreddit by raytoei. In this article, we will summarize the bulls’ thesis on RDDT. Reddit, Inc.'s share was trading at $193.14 as of January 28th. RDDT’s trailing and forward P/E were 90.46 and 57.14 respectively according to Yahoo Finance. brett-jordan-0FytazjHhxs-unsplash Reddit, Inc. operates a digital community in the United S...
We came across a bullish thesis on Reddit, Inc. on Value investing subreddit by raytoei. In this article, we will summarize the bulls’ thesis on RDDT. Reddit, Inc.'s share was trading at $193.14 as of January 28th. RDDT’s trailing and forward P/E were 90.46 and 57.14 respectively according to Yahoo Finance. brett-jordan-0FytazjHhxs-unsplash Reddit, Inc. operates a digital community in the United States and internationally. RDDT presents an interesting case for a quick-and-dirty valuation based on projected revenue growth through 2029. Analysts’ estimates suggest revenue could reach roughly $5.83 billion by 2029, averaging Morningstar and Discounting Cashflows projections. Accounting for an expected ~8% annual dilution, the share count may rise to 267 million, implying revenue per share of $21.8. To estimate potential returns, we examine three price-to-sales (P/S) scenarios: the current lofty 20x multiple, a more moderate 15x reflecting early-stage Meta’s average P/S post-IPO, and a mature peer benchmark of 9x, similar to Meta and Google today. Applying these multiples yields implied 2029 share prices of $436, $327, and $196, respectively. Compared to the last closed price of $209, these translate to annualized returns of 20.2%, 11.8%, and a potential decline if P/S compresses to mature peer levels. Given the current sales-based approach—necessary because Reddit has yet to report a full year of GAAP-positive earnings—this methodology favors stability over speculative earnings guidance, especially since analysts’ profit estimates vary widely. Reddit is actively investing in DAU growth and market expansion, and if revenue exceeds current estimates, upside could be substantial. For investors seeking a reasonable risk-reward balance, entry around $150 per share may offer a margin of safety, with expected returns in line with a target of roughly 15% per year over the next five years, while keeping an eye on whether RDDT’s growth trajectory sustains its high P/S multiple. ...
We came across a bullish thesis on Intel Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation's share was trading at $48.78 as of January 28th. INTC’s trailing and forward P/E were 88.08 and 85.47 respectively according to Yahoo Finance. Photo by Slejven Djurakovic on Unsplash Intel Corporation designs, develops, manufactur...
We came across a bullish thesis on Intel Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation's share was trading at $48.78 as of January 28th. INTC’s trailing and forward P/E were 88.08 and 85.47 respectively according to Yahoo Finance. Photo by Slejven Djurakovic on Unsplash Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. A recent large block trade in Intel Corporation (INTC) highlights significant institutional conviction in the company’s financial and operational stability. A sophisticated market participant sold 6,000 contracts of the June 18, 2026, $20.00 put at a $0.33 premium, effectively wagering $12 million in notional exposure that Intel will remain solvent over the next 18 months. This trade signals confidence in Intel’s tangible book value and liquidation floor, with the $20 strike representing a fundamental support level well below current stock price and book value. The put seller is capitalizing on Portfolio Margin efficiencies while arbitraging the “Catastrophe Premium” priced into deep out-of-the-money options, offering investors a chance to profit from structural mispricing of risk by following a high-conviction institutional strategy. Intel’s financial position further supports this thesis, with profitability returning in Q3 2025, gross margins recovering to 40%, and a strengthened balance sheet following cost reductions and dividend suspension. Operational validation underpins the trade: the 18A process node shows low defect density, and Intel’s foundry is winning major commitments from Amazon and Microsoft, with potential for Apple engagement. The risk of stock collapse is mitigated by the hard asset base—including fabs, Mobileye, and Altera stakes—and government support through the CHIPS Act. Investors following this trade can generate a high-probability, uncorrelated income stream using T-Bill...
We came across a bullish thesis on Intel Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation's share was trading at $48.78 as of January 28th. INTC’s trailing and forward P/E were 88.08 and 85.47 respectively according to Yahoo Finance. Photo by Slejven Djurakovic on Unsplash Intel Corporation designs, develops, manufactur...
We came across a bullish thesis on Intel Corporation on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on INTC. Intel Corporation's share was trading at $48.78 as of January 28th. INTC’s trailing and forward P/E were 88.08 and 85.47 respectively according to Yahoo Finance. Photo by Slejven Djurakovic on Unsplash Intel Corporation designs, develops, manufactures, markets, and sells computing and related products and services worldwide. A recent large block trade in Intel Corporation (INTC) highlights significant institutional conviction in the company’s financial and operational stability. A sophisticated market participant sold 6,000 contracts of the June 18, 2026, $20.00 put at a $0.33 premium, effectively wagering $12 million in notional exposure that Intel will remain solvent over the next 18 months. This trade signals confidence in Intel’s tangible book value and liquidation floor, with the $20 strike representing a fundamental support level well below current stock price and book value. The put seller is capitalizing on Portfolio Margin efficiencies while arbitraging the “Catastrophe Premium” priced into deep out-of-the-money options, offering investors a chance to profit from structural mispricing of risk by following a high-conviction institutional strategy. Intel’s financial position further supports this thesis, with profitability returning in Q3 2025, gross margins recovering to 40%, and a strengthened balance sheet following cost reductions and dividend suspension. Operational validation underpins the trade: the 18A process node shows low defect density, and Intel’s foundry is winning major commitments from Amazon and Microsoft, with potential for Apple engagement. The risk of stock collapse is mitigated by the hard asset base—including fabs, Mobileye, and Altera stakes—and government support through the CHIPS Act. Investors following this trade can generate a high-probability, uncorrelated income stream using T-Bill...
We came across a bullish thesis on Super Micro Computer, Inc. on Investment Edge’s Substack by David Vicuña. In this article, we will summarize the bulls’ thesis on SMCI. Super Micro Computer, Inc.'s share was trading at $31.21 as of January 28th. SMCI’s trailing and forward P/E were 24.57 and 16.50 respectively according to Yahoo Finance. Varonis Systems, Inc. (VRNS) Taps Microsoft Purview to cap...
We came across a bullish thesis on Super Micro Computer, Inc. on Investment Edge’s Substack by David Vicuña. In this article, we will summarize the bulls’ thesis on SMCI. Super Micro Computer, Inc.'s share was trading at $31.21 as of January 28th. SMCI’s trailing and forward P/E were 24.57 and 16.50 respectively according to Yahoo Finance. Varonis Systems, Inc. (VRNS) Taps Microsoft Purview to capitalize on AI Apps Adoption Opportunities Supermicro, Inc. (SMCI) is emerging as a foundational player in the global AI infrastructure build-out, providing high-performance servers and storage solutions critical to hyperscalers and major tech companies. Its competitive edge stems from speed to market, deep strategic partnerships with NVIDIA, AMD, and Intel, and proprietary technology, enabling first access to the latest innovations, such as the Nvidia Blackwell GPUs. SMCI has played a pivotal role in cutting-edge data center projects, including Musk’s xAI Colossus 1 and the upcoming Colossus 2, which is poised to become the largest AI factory in the world. Additionally, SMCI’s Data Center Building Block Solutions (DCBBS) offers best-in-class cooling, management software, and customizable solutions for cloud, AI, and networking deployments, positioning the company to capture substantial economic upside from the AI compute expansion. While the company has experienced margin compression due to aggressive scaling and volume-driven pricing for hyperscalers, this reflects a strategic “land and expand” approach rather than a loss of pricing power. SMCI’s market share in AI server solutions has grown from 6% in 2022 to 23% in late 2025, demonstrating strong demand and validation of its technology. These short-term margin sacrifices are expected to convert into higher operating leverage and profitability as installations mature and manufacturing efficiencies improve. At current prices, SMCI trades at modest multiples (forward P/E 20.37x, P/S 1.05x), suggesting the market is overemph...
The healthcare giant gained nearly $100 billion in market value. Shares of Eli Lilly (LLY +10.38%) climbed over 10% on Wednesday after the medicine maker delivered a blockbuster earnings report. Sales of Eli Lilly's GLP-1 medicines are booming Lilly's fourth-quarter revenue rose 43% year over year to $19.3 billion. The gains were driven by the biotech's diabetes and obesity treatments, Mounjaro an...
The healthcare giant gained nearly $100 billion in market value. Shares of Eli Lilly (LLY +10.38%) climbed over 10% on Wednesday after the medicine maker delivered a blockbuster earnings report. Sales of Eli Lilly's GLP-1 medicines are booming Lilly's fourth-quarter revenue rose 43% year over year to $19.3 billion. The gains were driven by the biotech's diabetes and obesity treatments, Mounjaro and Zepbound, which saw sales surge by 110% and 123%, respectively, to $7.4 billion and $4.3 billion. Lilly has been rushing to expand its manufacturing network to keep up with soaring demand for its popular GLP-1 medications. That challenge intensified after the drugmaker reached a deal with the U.S. government in November that's likely to further increase demand for Mounjaro and Zepbound, by making them available at reduced cost to Medicare beneficiaries. Moreover, Lilly's market share is rising in the rapidly growing obesity drug market after a clinical trial showed that Zepbound resulted in greater weight loss than Novo Nordisk's Wegovy. "Zepbound continues to be the market leader in the branded obesity market with nearly 70% share of new prescriptions," chief financial officer Lucas Montarce said during a conference call with analysts. Expand NYSE : LLY Eli Lilly Today's Change ( 10.38 %) $ 104.17 Current Price $ 1107.63 Key Data Points Market Cap $949B Day's Range $ 1065.44 - $ 1113.88 52wk Range $ 623.78 - $ 1133.95 Volume 353K Avg Vol 3.5M Gross Margin 83.03 % Dividend Yield 0.60 % All told, Lilly's adjusted net income jumped 41% to $6.8 billion, or $7.54 per share. That easily surpassed Wall Street's estimates, which had called for per-share profits of $6.91. Eli Lilly issued a strong growth forecast Looking ahead, management expects full-year revenue to grow by roughly 25% to between $80 billion and $83 billion in 2026, with adjusted earnings per share increasing by about 40% to $33.50 to $35.00. "This past year was busy and productive, and we expect more of the sam...
We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance. Advanced Micro Devices, Inc. operates a...
We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance. Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. AMD’s free cash flow per share is continuing to accelerate, driven by its ability to deliver personalized compute at marginal cost, giving customers a compelling total cost of ownership advantage across an expanding range of workloads. The company’s chiplet platform, which allows compute engines to be mixed and matched, underpins this reaccelerating growth, particularly in datacenter and client segments. Datacenter revenue, up 22% year-over-year, is fueled by the MI family’s outsized memory capacity, while client revenue benefits from AMD’s ability to combine CPUs with FPGAs—capabilities that are only possible through chiplets. The ongoing expansion of AI workloads, which demand highly versatile and distributed compute, positions AMD to capture substantial incremental value, with free cash flow per share expected to eclipse previous highs over the next one to two years. CEO Lisa Su highlighted strong progress with ROCm and ongoing investments in AI infrastructure, signaling the company’s commitment to a seamless customer development experience and the continued convergence of training, inference, and reinforcement learning. Market opportunity is expanding rapidly, with AMD viewing the AI compute total addressable market as materially larger than prior estimates, implying non-linear growth potential. Even if stock prices experience short-term volatility, the underlying fundamentals—scaling AI compute, growing earning power, and incremental value creation for end customers—remain robust. With AI capabilities doubling every six months and a...
We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance. Advanced Micro Devices, Inc. operates a...
We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance. Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. AMD’s free cash flow per share is continuing to accelerate, driven by its ability to deliver personalized compute at marginal cost, giving customers a compelling total cost of ownership advantage across an expanding range of workloads. The company’s chiplet platform, which allows compute engines to be mixed and matched, underpins this reaccelerating growth, particularly in datacenter and client segments. Datacenter revenue, up 22% year-over-year, is fueled by the MI family’s outsized memory capacity, while client revenue benefits from AMD’s ability to combine CPUs with FPGAs—capabilities that are only possible through chiplets. The ongoing expansion of AI workloads, which demand highly versatile and distributed compute, positions AMD to capture substantial incremental value, with free cash flow per share expected to eclipse previous highs over the next one to two years. CEO Lisa Su highlighted strong progress with ROCm and ongoing investments in AI infrastructure, signaling the company’s commitment to a seamless customer development experience and the continued convergence of training, inference, and reinforcement learning. Market opportunity is expanding rapidly, with AMD viewing the AI compute total addressable market as materially larger than prior estimates, implying non-linear growth potential. Even if stock prices experience short-term volatility, the underlying fundamentals—scaling AI compute, growing earning power, and incremental value creation for end customers—remain robust. With AI capabilities doubling every six months and a...
We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance. Advanced Micro Devices, Inc. operates a...
We came across a bullish thesis on Advanced Micro Devices, Inc. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on AMD. Advanced Micro Devices, Inc.'s share was trading at $252.74 as of January 28th. AMD’s trailing and forward P/E were 131.95 and 39.68 respectively according to Yahoo Finance. Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. AMD’s free cash flow per share is continuing to accelerate, driven by its ability to deliver personalized compute at marginal cost, giving customers a compelling total cost of ownership advantage across an expanding range of workloads. The company’s chiplet platform, which allows compute engines to be mixed and matched, underpins this reaccelerating growth, particularly in datacenter and client segments. Datacenter revenue, up 22% year-over-year, is fueled by the MI family’s outsized memory capacity, while client revenue benefits from AMD’s ability to combine CPUs with FPGAs—capabilities that are only possible through chiplets. The ongoing expansion of AI workloads, which demand highly versatile and distributed compute, positions AMD to capture substantial incremental value, with free cash flow per share expected to eclipse previous highs over the next one to two years. CEO Lisa Su highlighted strong progress with ROCm and ongoing investments in AI infrastructure, signaling the company’s commitment to a seamless customer development experience and the continued convergence of training, inference, and reinforcement learning. Market opportunity is expanding rapidly, with AMD viewing the AI compute total addressable market as materially larger than prior estimates, implying non-linear growth potential. Even if stock prices experience short-term volatility, the underlying fundamentals—scaling AI compute, growing earning power, and incremental value creation for end customers—remain robust. With AI capabilities doubling every six months and a...
We came across a bullish thesis on Tower Semiconductor Ltd. on stocks subreddit by Confident-Cell-2549. In this article, we will summarize the bulls’ thesis on TSEM. Tower Semiconductor Ltd.'s share was trading at $138.93 as of January 28th. TSEM’s trailing and forward P/E were 76.66 and 51.28 respectively according to Yahoo Finance. Photo by Umberto on Unsplash Tower Semiconductor Ltd., an indepe...
We came across a bullish thesis on Tower Semiconductor Ltd. on stocks subreddit by Confident-Cell-2549. In this article, we will summarize the bulls’ thesis on TSEM. Tower Semiconductor Ltd.'s share was trading at $138.93 as of January 28th. TSEM’s trailing and forward P/E were 76.66 and 51.28 respectively according to Yahoo Finance. Photo by Umberto on Unsplash Tower Semiconductor Ltd., an independent semiconductor foundry, provides technology, development, and process platforms for integrated circuits in the United States and internationally. TSEM is often mischaracterized as just another foundry, but this view misses its increasingly strategic role in the AI data center supply chain as physical limits emerge in data transmission. As AI workloads scale, copper interconnects are approaching their limits, and while co-packaged optics (CPO) remain a longer-term solution, industry leaders like Broadcom have reaffirmed that pluggable optics will dominate the next phase. This shift directly benefits Tower, which supplies the specialty silicon—particularly silicon photonics and analog/power components—that enables pluggable optical modules at scale. Tower sits at a critical layer beneath hyperscalers, supplying over 50 silicon photonics customers, including 7 of the top 11 datacom transceiver makers that sell into cloud giants such as Amazon, Microsoft, Google, and Meta. The company’s relevance is demonstrated by partnerships such as InnoLight, which uses Tower’s PH18 silicon photonics platform to build high-speed transceivers for hyperscalers. Beyond volume optics, Tower’s technological edge is reinforced by its work with Anello Photonics on ultra-low-loss silicon nitride waveguides, a capability that is difficult to replicate and essential for precision photonics applications. This process has received validation through U.S. Navy-backed programs and is extensible across other customers. Third-party recognition from Coherent and Northrop Grumman further supports Tower’...
We came across a bullish thesis on NVIDIA Corporation on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation's share was trading at $191.52 as of January 28th. NVDA’s trailing and forward P/E were 46.66 and 24.63, respectively according to Yahoo Finance. NVIDIA Corporation, a computing infrastructure company, p...
We came across a bullish thesis on NVIDIA Corporation on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on NVDA. NVIDIA Corporation's share was trading at $191.52 as of January 28th. NVDA’s trailing and forward P/E were 46.66 and 24.63, respectively according to Yahoo Finance. NVIDIA Corporation, a computing infrastructure company, provides graphics and compute, and networking solutions in the United States and internationally. NVDA free cash flow per share has surged 15x since 2023, driven primarily by persistent AI scaling laws, which link increased compute to higher intelligence and adoption. The company’s Blackwell and Rubin platforms alone are expected to generate $0.5 trillion in revenue from 2025 through 2026, underscoring the massive market opportunity. Management highlights that the three AI scaling laws—pre-training, post-training, and inference—remain intact, creating a virtuous cycle where improved AI intelligence drives broader adoption and further profit growth. This dynamic is evident across the tech ecosystem, with Singularity Scalers like Microsoft, Palantir, and Meta seeing tangible top-line and bottom-line improvements. Microsoft’s 365 Copilot adoption, for instance, grew 50% quarter-over-quarter, reflecting the rapid integration of AI into enterprise workflows, code assistance, and productivity tools. Despite enormous CapEx, Nvidia’s free cash flow per share continues to rise, reflecting the non-linear value creation enabled by AI, rather than financial engineering. The analogy to the U.S. railroad infrastructure highlights the point: well-managed companies that deploy infrastructure to deliver incremental value—whether railroads in the 19th century or AI compute today—tend to compound free cash flow and shareholder returns over time. Union Pacific’s 6.25x free cash flow per share growth since 2010 exemplifies this pattern. For investors, the implications are clear: companies that h...
Someone who lived with four-year-old Gus Lamont is now considered a suspect in his disappearance, SA police said on Thursday as they declared the case a major crime. Four-year-old Gus Lamont disappeared from his family’s outback home in South Australia more than four months ago, sparking what SA police called “one of the largest, most intensive and most protracted searches” they had ever undertake...
Someone who lived with four-year-old Gus Lamont is now considered a suspect in his disappearance, SA police said on Thursday as they declared the case a major crime. Four-year-old Gus Lamont disappeared from his family’s outback home in South Australia more than four months ago, sparking what SA police called “one of the largest, most intensive and most protracted searches” they had ever undertaken. Mounted police, police divers, defence and emergency services personnel, drones and trackers searched the 60,000 hectare Oak Park station, near Yunta, which is about 300km inland from Adelaide. Detective superintendent Darren Fielke, the officer in charge of major crime, said police had effectively ruled out Gus wandering off and Gus being abducted. He said they were now investigating someone in his household – but stressed the suspect was not one of his parents. Police had “identified a number of inconsistencies and discrepancies” in the information from the family members, Fielke said. Sign up: AU Breaking News email “As a result of these inconsistencies, and investigations into them, a person who resides at Oak Park station has withdrawn their support for the police and is no longer cooperating with us,” he said. “The person who has withdrawn their co-operation is now considered a suspect in the disappearance of Gus. I do want to stress, however, that Gus’s parents are not suspects in his disappearance. “You appreciate at this time I cannot make any further comment about the suspect, given that this is now a criminal investigation and a declared major crime. What I can say, however, is that we’ll continue to thoroughly and meticulously investigate the disappearance of Gus until we get an outcome.” Gus, who a family friend described as shy but adventurous, was playing outside the family sheep station at 5pm on Saturday 27 September. The blond, curly haired little boy was wearing a blue T-shirt with a yellow Minion on the front, a grey sun hat, light-grey long pants and...
Hong Kong commercial real estate is Asia-Pacific’s fifth most favoured investment destination for cross-border capital this year, underscoring an improved outlook for the city’s battered property market, according to a CBRE report. Hong Kong also recorded the second highest number of luxury residential property deals among 12 super-prime markets worldwide in the last quarter of 2025, sustaining a ...
Hong Kong commercial real estate is Asia-Pacific’s fifth most favoured investment destination for cross-border capital this year, underscoring an improved outlook for the city’s battered property market, according to a CBRE report. Hong Kong also recorded the second highest number of luxury residential property deals among 12 super-prime markets worldwide in the last quarter of 2025, sustaining a recovery that began in the second quarter, a report from Knight Frank showed. After a period outside the top 10, Hong Kong ranked fifth in CBRE’s 2026 Asia-Pacific investor intentions survey, with the improvement coming on the back of growing investor interest, particularly from mainland Chinese investors, according to the consultancy. Advertisement “The living and hotel sectors are top targets, with 2025 witnessing several deals for repurposing underutilised hotel assets into student accommodation for the growing student base, a trend expected to continue this year,” CBRE said. Compiled between November and December, the survey included 422 responses from investors such as private equity funds, developers, insurance companies, banks, sovereign wealth and pension funds, family offices and high-net-worth individuals in markets including Japan, Australia, Mainland China, Singapore, Taiwan, Korea and India. Advertisement Tokyo retained the top spot as the preferred market for cross-border investment for a seventh consecutive year, followed by Sydney, while Singapore and Seoul tied for third.
This isn't the first time a software stock has plunged over AI fears. Cloud software stocks have been big winners on the market historically, but lately, one of the surest bets in investing over the last decade has gone belly up. The iShares Expanded Tech-Software Sector ETF (IGV 1.81%), which tracks top software stocks like Microsoft, Palantir, and Salesforce, is down 22% year-to-date, and the cu...
This isn't the first time a software stock has plunged over AI fears. Cloud software stocks have been big winners on the market historically, but lately, one of the surest bets in investing over the last decade has gone belly up. The iShares Expanded Tech-Software Sector ETF (IGV 1.81%), which tracks top software stocks like Microsoft, Palantir, and Salesforce, is down 22% year-to-date, and the culprit is clear. Investors are panicked that new AI tools from companies like OpenAI and Anthropic could disrupt entrenched software-as-a-service (SaaS) models. That theory is leading to valuations in the historically expensive industry being dramatically compressed, even though there's no sign yet that AI is putting a significant dent in any major software businesses. This response from the market isn't unprecedented. The first software sell-off in response to AI fears came shortly after the launch of OpenAI's ChatGPT. Alphabet's "code red" When ChatGPT was launched on Nov. 30, 2022, investors immediately understood that it was a disruptive innovation -- the era of AI was here. Alphabet (GOOG 2.08%) (GOOGL 1.89%) and its investors also recognized the launch as the biggest challenge yet to Google Search. Scrambling to come up with a response to ChatGPT, Alphabet announced a "code red," and by February 2023, it introduced Bard, its own chatbot similar to ChatGPT. However, in its initial presentation, Bard gave some incorrect answers, and Alphabet stock plunged as a result, falling 8% in a single session. At the time, Alphabet looked weaker and more vulnerable than it had in a long time. A start-up that was little-known to most investors had kicked off the next technological revolution with the help of Microsoft, and the Google-parent had been left watching from the sidelines. It might have seemed risky to double down on Alphabet stock at that point, but that would have been the right move, and you only need to look at the stock chart over the last three years below to see why...