Chip Stock Investor Podcast Why AI is "Eating" Software Stocks (And Why We Are Looking for Deals)
Nov 28, 2025
Investors are worried about AI's impact on legacy software, but the reality may be more nuanced. They explore how Adobe's significant acquisition of SEMrush marks a new competitive phase while addressing rising expenses and shrinking profit margins. The podcast reveals that despite fears, revenue growth in the software sector remains steady. This sell-off could present opportunities for savvy investors willing to 'bottom feed' in the current landscape.
AI Snips
Chapters
Transcript
Episode notes
AI Narrative Creates Circular Panic
- Investor narratives about AI
End Of The SaaS R&D Holiday
- The 2010s were an R&D holiday for SaaS which boosted margins and multiples.
- Now a renewed R&D cycle and multiple contraction are compressing valuations.
Be Ready For Bumpy SaaS Returns
- Expect cyclicality and be willing to