Motley Fool Backs 3 Software Stocks as AI Fears Drive Sector Dip

1 articles · Updated · The Motley Fool · Jul 13

Three software names — Microsoft, Shopify and Veeva Systems — were highlighted as buy-the-dip candidates after investor worries that AI could displace traditional software products.
AI is central to the case: Microsoft has introduced Scout, Shopify offers merchant tools, and Veeva launched Veeva AI, showing these companies are embedding the technology rather than being sidelined by it.
Microsoft’s appeal rests on durable enterprise ties, cloud growth and steady revenue and earnings momentum, giving it room to refine AI products while still leaning on its core business and dividend.
Shopify carries more valuation risk at 65x forward earnings versus 21.4x for information technology stocks, but its 30% share of U.S. online businesses and high switching costs support a long-term growth case.
Veeva adds a niche healthcare angle: it generated $3.3 billion over the past 12 months against a $20 billion addressable market, with life-sciences specialization and sticky customers seen as buffers during the software selloff.