The New Direction of Capital

In recent weeks, a notable trend has emerged in global markets: a visible pullback in technology stocks. Software companies in particular are moving out of the long-held perception of “limitless growth and endless potential” and are now being evaluated more cautiously by investors. At the center of this shift stands a single concept: artificial intelligence.

For a long time, artificial intelligence was presented in financial markets almost unquestionably as a growth story. Higher efficiency, lower costs, faster decision-making, and new business models these promises formed the core arguments behind rising technology valuations. However, since the last quarter of 2025, a subtle yet critical break has begun in investor perception. Artificial intelligence is now viewed not only as an opportunity but also as a serious risk factor for existing business models.

The current market volatility signals more than a classic profit-taking phase or a temporary correction. The real issue is the potential of artificial intelligence to fundamentally reshape value chains particularly in the software and services sectors and to render some companies obsolete. In other words, technology has begun to threaten itself from within.

Many traditional software companies have long generated revenue through licenses, subscriptions, and enterprise solutions. Yet with the rise of generative AI tools, many functions can now be performed at significantly lower cost — even by individual users. This does not merely mean the emergence of new startups; it also implies margin compression for established players and a weakening of their bargaining power.

From an investor’s perspective, this raises a crucial question: “How closely will these companies’ business models five years from now resemble those of today?” Technology stocks were once seen as the guaranteed winners of the future. Now a new concern is being voiced: “What if these companies lose relevance because of the very technologies they created?”

This paradox created by artificial intelligence is producing a market psychology we are not used to. Technology was traditionally perceived as a force that reduced uncertainty and increased predictability. Now it has become a primary source of uncertainty. Which sectors will transform? Which professions will disappear? Which companies will adapt and which will not? The absence of clear answers is pushing risk perception higher.

What we are witnessing is not merely a financial valuation debate but a strategic mindset shift. Investors are no longer looking only at balance sheets, profitability, or growth rates. They are asking a deeper question: “Does this company possess strategic flexibility?” In other words, does it have the organizational structure, culture, and leadership required to adapt to technological transformation?

At this scale, the impact of artificial intelligence resembles that of past industrial revolutions. Just as some sectors disappeared and new ones emerged during those periods, we are now experiencing the second major break of the digital age. The difference this time is speed: the change is faster, broader in impact, and offers a much shorter adaptation window. This fuels not only the fear of missing out, but also the fear of being on the wrong side of change.

Another important dimension is capital flows. Recently, part of the money exiting technology funds has begun moving toward more tangible and traditional sectors: energy, defense, infrastructure, and even agriculture. This suggests that investors are favoring areas with more predictable cash flows over abstract AI-driven promises. Risk appetite is not disappearing but its direction is changing.

The key takeaway is this: artificial intelligence is not only an innovation that creates new opportunities; it is also a force that disrupts the existing economic balance. Markets have not yet fully absorbed this shock. Valuations are being rewritten, business models are being questioned, and for the first time the idea of technology as a “safe haven” is being seriously debated.

In conclusion, one statement stands out:

“Artificial intelligence is not only a growth story; it is also a risk factor for existing business models. The market has begun to reassess the impact of this shock.”

And perhaps the most critical question is this: Will the winners of the future be those who develop artificial intelligence the fastest or those who manage to survive despite it? The answer will shape the investment map of the coming years.