BUZZ-U.S. software stocks slump on AI concerns, chips at record

Reuters04-10 22:43
BUZZ-U.S. software stocks slump on AI concerns, chips at record

** Shares of U.S. software companies slide again on heightened concerns over disruption from new AI models

** Cybersecurity stocks among the worst hit: Palo Alto PANW.O down 7.6%, Datadog DDOG.O down 5.8%, Zscaler ZS.O down 5.4%, Crowdstrike CRWD.O down 5.4%, Fortinet FTNT.O down 5.3%

** Stocks sold off on Thursday after AI firm Anthropic launched the powerful Mythos model earlier this week but stopped short of a broad release, citing concerns it could expose previously unknown cybersecurity vulnerabilities

** Reports say U.S. Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell convened an urgent meeting with bank CEOs this week to warn of cyber risks posed by Anthropic's latest AI model

** iShares Expanded Tech-Software Sector ETF IGV.N slides 3.4% to lowest since November 2023; ETF down ~30% YTD

** Other software stocks also fall: Salesforce CRM.N down 2.8%, ServiceNow NOW.N down 5.8% after UBS downgrade, Autodesk ADSK.O down 3.7%, Atlassian TEAM.O down 2.8%, Snowflake SNOW.N down 6.5%

** At the same time, Philadelphia Semiconductor index .SOX touches record high, last up 2%; up ~25% YTD;

** AI lab Anthropic is exploring the possibility of designing its own chips, Reuters reported citing sources

(Reporting by Sruthi Shankar)

((Sruthi.shankar@thomsonreuters.com))

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