Jefferies names AI winners as software sell-off takes a breather

US software stocks have endured a brutal start to 2026, with the iShares Expanded Tech-Software Sector exchange traded fund (ETF) crashing over 25% as investors grapple with the “AI paradox”.

Fear that generative artificial intelligence could dismantle the seat-based pricing model of traditional SaaS (Software-as-a-Service) pushed the group into a bear market this month.

However, Anthropic’s integration of its Claude Cowork tool into legacy platforms triggered a bounce on Tuesday, signalling the panic may be a bit “overdone” after all.

Analysts are now flagging specific “AI-proof” giants – most notably Intuit (INTU) and Salesforce (CRM) as generational buying opportunities hidden among the wreckage.

Why analysts now view Intuit stock as an AI winner?

Despite a staggering 45% decline this year, Intuit stock remains a top conviction pick for Jefferies analyst Brent Thill.

The skepticism surrounding INTU stems from fear that AI will automate tax prep and bookkeeping to the point of making software redundant.

However, Thill argues this ignores the firm’s massive proprietary advantage – 40 years of financial data from roughly 100 million customers.

Intuit isn’t just reacting to artificial intelligence; it’s weaponizing it. The multinational has already deployed 80 different AI model variations to personalize financial workflows.  

In a landscape where “data is the new oil,” INTU’s deep well of historical user behavior makes its platform incredibly sticky.

Thill labels it a “more durable vendor,” noting that for the average enterprise or small business, it remains much more “cost-effective” to rely on Intuit Inc’s refined ecosystem than to build custom AI accounting tools from scratch.

For investors, the current valuation represents a rare entry point into a business whose “internal AI adoption underpins growth confidence.”

Why analysts now view Salesforce stock as an AI winner?

Salesforce hasn’t been spared in the 2026 tech rout, with shares sliding more than 29%.

Market’s primary anxiety is that AI agents might replace the need for human seats, thereby reducing CRM’s revenue.

Still, according to Jefferies, Salesforce is actually “best-positioned among apps vendors to deliver on AI agents” rather than being replaced by them.

The software firm’s pivot toward autonomous agents – AI entities that can execute tasks within “Slack” and its CRM suite – is seen as a masterstroke in self-disruption.

The recent Anthropic update, which integrates “Claude Cowork” directly into CRM-owned Slack, validates the “incumbent advantage.”

Rather than being sidelined, Salesforce Inc is becoming the “essential host” for the world’s most advanced AI tools, with pioneers like Anthropic continuing to use CRM infrastructure to run their businesses.

By shifting the narrative from “software you use” to “AI agents that work for you,” Salesforce Inc. looks well-positioned to “defend its high operating margins” and prove that its platform is the indispensable foundation of the modern enterprise.

The post Jefferies names AI winners as software sell-off takes a breather appeared first on Invezz