AI puts Software-as-a-Service at risk: now what?
Software companies were stock market darlings for years: high growth, high margins and recurring revenues. But today that story is a lot less evident: artificial intelligence is putting pressure on the classic model. What does this mean for investors? Is this a temporary correction, or are we facing a structural upheaval? Mark Van Assche, account manager Private Banking and Wealth, talks about it with Joris Franck, portfolio manager and technology expert at KBC Asset Management.
28-05-2026
How are investors reacting?
Share prices hit new record highs, particularly in the US
The war with Iran has caused significant volatility on the stock markets in recent months. Since the end of March, the markets have recovered and reached new record highs, particularly in the US, though this sharp rise did trigger profit-taking on tech shares last month.
From time to time, doubts arise about the profitability of AI investments. The most recent triggers were weak results from the Magnificent 7 and news that China is making progress in AI or chip technology.
Results season is going strong, but shares in semiconductor companies in particular have lagged behind.
What happened in the world?
Oil prices are heading north again following a flare-up of the conflict in the Middle East
The interim agreement between the US and Iran appears to have little value at this stage. Flare-ups in the conflict are causing major fluctuations in the price of oil. The medium-term impact of the energy shock is still uncertain.
The ECB raised its key rate in June and kept it stable in July. The Fed kept its key rate stable last week. However, divisions within the Fed are growing, as some governors are now in favour of a rate hike.
This web page is published by KBC Asset Management NV (KBC AM). The information and figures it contains are a snapshot, may be changed without notice and offer no guarantee for the future. The information provided should not be regarded as investment advice or as an investment recommendation. No part of this page may be reproduced without the prior express written consent of KBC AM. The information on it is governed by the laws of Belgium and is subject to the exclusive jurisdiction of its courts. Publisher: KBC Group NV, 2 Havenlaan, 1080 Brussels, Belgium. VAT BE 0403.227.515, RLP Brussels. www.kbcbrussels.be.
