JP Morgan Chase & Co. said that software stocks have been "prejudged by the market" and that the willingness to enter the market remains low after this round of selling frenzy.

The selling wave of software, among other sectors, believed to face risks due to the development of artificial intelligence, showed no signs of easing on Wednesday, with Morgan Stanley stating that there is a strong sense of pessimism among investors. Morgan Stanley analyst Toby Ogg pointed out: "The environment we are in right now is that this industry is not only presumed guilty until proven innocent, but it has even reached the point of being judged before being tried." Ogg met with over 50 investors from Europe and the United States in the past two weeks. He mentioned that they have significantly reduced their positions in the software sector in the past 12 to 18 months. In his report to clients, he wrote that even after the latest round of pullback, "the overall willingness to enter the market remains low."