While artificial intelligence (AI) stocks remain popular, software stocks have struggled. Software-as-a-service (SaaS) stocks have faced significant challenges this year. Many SaaS companies have not seen accelerated growth due to AI, as their customers navigate AI's impact on their businesses. Stagnant or decelerating revenue growth has fueled the argument that the software sector is an AI loser. Some believe AI coding tools will allow organizations to create their own software, potentially replacing workers. Even if this doesn't happen, AI could lead to companies needing fewer software licenses. However, AI-generated code may not always be maintainable, as a study by Alibaba showed that 75% of AI-created code failed within a year. While SaaS companies that are simple UI wrappers may be vulnerable to AI, those at the center of their customers' data and workflow are better positioned to survive. Organizations often prefer to avoid the added responsibility and risks of software failure or AI agents causing damage. Two companies, ServiceNow and Salesforce, are highlighted as having significant upside potential after their sell-offs, despite the challenges facing the software market.