Finance
Retail inflows into software stocks hit record despite AI-disruption worries
Published by Global Banking & Finance Review®
Posted on February 10, 2026
2 min readLast updated: February 10, 2026
Quick Summary
Retail investors are buying software stocks despite AI concerns, with BlackRock's ETF seeing record inflows. Major tech stocks like Amazon are popular buys.
Record Retail Investment in Software Stocks Amid AI Concerns
Retail Investment Trends in Software Stocks
Feb 10 (Reuters) - Retail investors snapped up software and tech stocks following last week's heavy selloff, largely brushing aside worries that advances in artificial-intelligence models could upend parts of the industry.
Impact of AI on Market Sentiment
Net inflows into BlackRock's iShares Expanded Tech-Software Sector exchange-traded fund hit a record $176 million on a one-month rolling period as of Monday's close, according to data compiled by Vanda Research. The analytics firm said the flows were more than double the peak seen in late 2024.
Performance of Major Tech Stocks
Global markets were rattled last week after AI developer Anthropic's launch of plug-ins for its Claude Cowork agent reignited fears that rapidly progressing AI systems could encroach on the core businesses of traditional software companies.
Sector-Specific Reactions
The S&P 500 Software and Services index has fallen about 13% since late January and wiped out close to $1 trillion in market value over the week through Thursday.
The iShares Tech-Software ETF has lost nearly 20% of its value so far this year.
Retail investors took advantage of the dip to accumulate mega-cap stocks. Amazon.com witnessed its largest single-day net retail buying since August 2024 on Friday, trumping AI chip giant Nvidia, according to Vanda.
AI jitters, however, rippled into new corners of the market this week, dragging down insurers in the U.S. and Europe. Analysts linked the losses to developments around insurance-related apps within ChatGPT.
(Reporting by Johann M Cherian in Bengaluru; Editing by Shilpi Majumdar)
Key Takeaways
- •Retail investors are heavily investing in software stocks.
- •AI advancements are causing market disruptions.
- •BlackRock's ETF sees record inflows amid market volatility.
- •Major tech stocks like Amazon are being accumulated.
- •AI developments impact insurance sectors in the US and Europe.
Frequently Asked Questions about Retail inflows into software stocks hit record despite AI-disruption worries
1What is retail investment?
Retail investment refers to the purchasing of securities or assets by individual investors, rather than institutional investors. Retail investors typically buy stocks, bonds, or mutual funds for personal investment.
2What is artificial intelligence?
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, particularly computer systems. These processes include learning, reasoning, and self-correction.
3What is an exchange-traded fund (ETF)?
An exchange-traded fund (ETF) is a type of investment fund that is traded on stock exchanges, similar to stocks. ETFs hold assets such as stocks, commodities, or bonds and generally operate with an arbitrage mechanism.
4What is the S&P 500 index?
The S&P 500 index is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is a key indicator of the U.S. equities market.
5What are mega-cap stocks?
Mega-cap stocks are shares of companies with a market capitalization of $200 billion or more. These companies are typically leaders in their industries and are considered stable investments.
