Top fund manager sees AI threatening application software companies

A top-performing fund manager believes AI poses an existential threat to most application software companies, predicting many will not survive. Nick Evans, whose $12 billion global technology fund significantly outperformed peers, has divested most software holdings, citing AI's ability to replicate existing software and empower clients to build tools internally. The US software sector ETF is down 22%, contrasting with soaring semiconductor stocks, as AI drives demand for computing power. Evans favors chipmakers and data center infrastructure firms.