AI Bust or a Once-in-a-Decade Buying Opportunity for This Software Stock?
The Motley Fool
by newsfeedback@fool.com (Lee Samaha)February 20, 2026
AI-Generated Deep Dive Summary
The stock market has seen a significant shift in investor focus over the past year, with many software companies facing pressure as fears about artificial intelligence (AI) threats and slowing growth metrics weigh on their valuations. Notably, PTC (NASDAQ: PTC), a leading industrial software company, has experienced a 10% decline in its stock price, driven by concerns that AI could disrupt its business model and compounded by a slowdown in its annual run rate (ARR). Despite these fears, some analysts argue that this presents a unique opportunity to buy into a growth story at a reasonable valuation.
The article highlights that investor sentiment has shifted toward AI-related stocks like Nvidia, with many questioning whether industrial software companies like PTC can compete in the age of AI. While there are valid concerns about AI's potential impact on industries reliant on traditional software solutions, PTC has shown resilience and adaptability. The company has a strong track record of innovation, particularly in areas like product lifecycle management (PLM) and digital transformation tools, which remain critical for businesses across various industries.
PTC's ARR growth has slowed slightly, but it still demonstrates positive momentum, indicating sustained demand for its solutions. Additionally, the company's focus on integrating AI into its own products could position it as a leader in the next generation of industrial software. With a reasonable valuation and a history of delivering returns, PTC may be undervalued by the market, which is often quick to react to short-term trends without fully considering long-term growth potential.
For investors, this situation underscores the importance of distinguishing between hype-driven market reactions and fundamental value. While AI represents a significant technological shift,
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Originally published on The Motley Fool on 2/20/2026