Retail inflows into software stocks hit record despite AI-disruption worries

Reuters

Wed, February 11, 2026 at 12:02 AM GMT+9 1 min read

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Feb 10 (Reuters) - Retail investors snapped up software and tech stocks following last week’s heavy selloff, largely ​brushing aside worries that advances in artificial-intelligence models ‌could upend parts of the industry.

Net inflows into BlackRock’s iShares Expanded ‌Tech-Software Sector exchange-traded fund hit a record $176 million on a one-month rolling period as of Monday’s close, according to data compiled by Vanda Research. The analytics firm said the ⁠flows were more than ‌double the peak seen in late 2024.

Global markets were rattled last week after AI developer ‍Anthropic’s launch of plug-ins for its Claude Cowork agent reignited fears that rapidly progressing AI systems could encroach on the core ​businesses of traditional software companies.

The S&P 500 Software ‌and Services index has fallen about 13% since late January and wiped out close to $1 trillion in market value over the week through Thursday.

The iShares Tech-Software ETF has lost nearly 20% of its value so far this year.

Retail ⁠investors took advantage of the dip ​to accumulate mega-cap stocks. Amazon.com ​witnessed its largest single-day net retail buying since August 2024 on Friday, trumping AI chip giant ‍Nvidia, according to ⁠Vanda.

AI jitters, however, rippled into new corners of the market this week, dragging down insurers in the ⁠U.S. and Europe. Analysts linked the losses to developments around insurance-related ‌apps within ChatGPT.

(Reporting by Johann M Cherian in ‌Bengaluru; Editing by Shilpi Majumdar)

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