JPMorgan says buy the dip in these 14 high-quality software stocks set to buck further AI disruption

• JPMorgan Chase & Co. gives investors a reason to buy the dip after a rout in AI-fueled software.

• Analysts have listed several top picks for stocks to buy on the dip after the sell-off.

• Stocks JPMorgan is focusing on include Microsoft, ServiceNow and CrowdStrike.

The software sector was hit hard last week as concerns about artificial intelligence disruption triggered a sell-off in technology stocks, but JPMorgan believes the sharp decline created an opportunity to buy a handful of stocks.

Analysts highlighted several software names they believe are well-positioned, even as concerns about artificial intelligence disruption have dragged the industry to “extremely pessimistic levels.”

“In the tech space, this clear risk of disruption has led to a sell-off in both quality software and speculative growth software names,” the analysts wrote.

Analysts say reasons why investors should buy the dip include:

• The worst-case scenario of AI disrupting software is unlikely to happen

• The outlook for the broader tech sector is positive

• The software industry is positioned at an extremely low level

• Fundamentals are strong, valuations fell to lows last year around Liberation Day

• Software revenue is supportive

Here are some of J.P. Morgan’s picks of “AI-resilient” software stocks that could weather a new round of disruption fears.

Microsoft

• Code: MSFT

• 12-month return: +1%

Palo Alto Networks

• Code: PANW

• 12-month return: -16%

Immediate service

• code: now

• 12-month return: -48%

mass strike

• Code: CRWD

• 12-month return: -2%

data dog

• Code: DDOG

• 12-month return: -10%

Z scaler

• Code: ZS

• 12-month return: -17%

checkpoint

• Code: CHKP

• 12-month return: -14%

Taylor Technologies

• Code: TYL

• 12-month return: -41%

Guidewire software

• Code: GWRE

• 12-month return: -38%

match point

• Code: SAIL

• 12-month return: -33%

Jay frog

• Code: frog

• 12-month return: +44%

Neskop

• Code: NTSK

• 12-month return: -35%

Sentinel One

• Stock code: S

• 12-month return: -43%

Q2 Holdings

• Code: QTWO

• 12-month return: -39%

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