New AI tools from Anthropic and OpenAI trigger massive tech stock selloff. Investors fear AI disruption threatens traditional software business models.

Stifel downgrades Microsoft to Hold, citing aggressive AI spending projected at $200 billion and Azure cloud capacity challenges that may pressure margins and earnings.

Anthropic's new Claude Cowork legal plugin sparked panic in software markets, causing Thomson Reuters and RELX shares to plunge 15% as investors fear AI disruption.

Anthropic's new legal AI plug-in sparks massive software stock selloff as investors fear AI disruption threatens traditional SaaS business models.

Anthropic unveiled a legal automation plugin for Claude Cowork that caused major legal and publishing software stocks to plummet. Shares of Thomson Reuters fell 18%, RELX dropped 14%, and Pearson declined 8% as investors fear AI disruption in the legal services industry.

Taiwan Semiconductor Manufacturing (TSMC) has seen its stock jump 72% since the start of 2025, reaching 72% market share in contract semiconductor manufacturing. The company is planning $52-56 billion in capital expenditures for 2026 and raised its five-year compound annual growth rate outlook from 20% to 25%, driven by booming AI chip demand.

Microsoft's stock saw its biggest drop since 2020, wiping out $400 billion in market value, as investors question the high cost and slow monetization of its heavy investments in artificial intelligence and its exposure to OpenAI.

Cloud software stocks plunge as AI agents threaten traditional software stack, prompting private equity to identify acquisition targets among vulnerable mid-sized software companies.

While Nvidia dominates the AI chip market, Wall Street analyst Beth Kindig has named Micron Technology her top AI chip stock for 2026. The company's critical high-bandwidth memory (HBM) is becoming essential for handling the massive data demands of AI workloads.