The S&P 500 climbed 8.28% in 2026, yet a striking group of ten stocks plunged over 40%. This paradox reflects the market’s split mindset on artificial intelligence: investors are eagerly buying AI winners while aggressively dumping companies they believe AI will disrupt.
Software and Consulting Stocks Bear the Brunt of AI-Driven Sell-Off
The steep losses are heavily concentrated in software, consulting, and advertising sectors, with AI-related fears triggering sharp declines. The sell-off intensified after Anthropic released a new AI model in February, sparking what some traders dubbed the "SaaS-pocalypse".
Intuit suffered the most severe hit, dropping 55.27%. Its TurboTax service, accounting for about 25% of revenue and profit, faces stiff competition from emerging AI-powered tax tools. Goldman Sachs analyst Gabriela Borges slashed Intuit’s price target from $519 to $276 in June. The company responded by cutting 17% of its workforce, approximately 3,000 jobs, and lowering its TurboTax growth outlook. Once valued at over $219 billion, Intuit’s current market cap is roughly $88 billion.
Accenture experienced a similar fate, declining 45.21% as clients prioritized AI projects over traditional consulting services. New client orders slid from $19.7 billion to $19.3 billion, prompting the firm to reduce its sales growth forecast to 3%-4%. The stock plunged nearly 18% in one session. Other hurt stocks like Cognizant, Gartner, and The Trade Desk dropped between 44% and 55%, all providers of services vulnerable to AI automation.
Non-AI Factors Propelled the Two Largest Losers
Interestingly, the two worst-performing stocks had little to do with AI anxiety. CoStar Group tumbled 58.86%, weighed down by costly investments in its Homes.com platform, which won’t be profitable until 2030 despite strong revenue growth in other segments. Hedge fund D.E. Shaw pushed for the business to be cut or downsized to unlock value, but management and shareholders resisted the move, leading to its exclusion from the Nasdaq-100 in May.
Boston Scientific dropped 53.59% after lowering its expected sales growth from 10%-11% to 6.5%-8% between February and April. Its struggles contrast starkly with competitor Medtronic, whose heart device sales surged 124% in the U.S., gaining significant market share. This slump illustrates how traditional performance factors remain powerful amid technological disruptions.
These events show a market sharply divided between capitalizing on AI’s potential and punishing companies perceived to be on the wrong side of it. While some stocks are soaring, the fallout has been brutal for those stuck relying on legacy business models.
This content is for informational purposes and is not financial advice.
