Industry: Pegasystems, Cadence Design Systems, Varonis Systems Shares Plunge as AI Impact Worries Continue

[Para 1: The Lead] The software industry experienced a significant downturn today, with Pegasystems, Cadence Design Systems, and Varonis Systems seeing their shares plummet. This downturn is part of a broader sell-off in the sector, driven by escalating concerns over the impact of artificial intelligence on traditional software models. The Nasdaq Composite index fell 0.8%, and the S&P 500 also declined, reflecting investors' shift away from SaaS providers to companies with more robust, AI-integrated business models. [Para 2-3: Supporting details & Context] Pegasystems, in particular, has been highly volatile, with shares moving more than 5% in 16 instances over the past year. Today's drop indicates the market views the AI impact as significant but not transformative to the company's fundamentals. Cadence Design Systems and Varonis Systems also saw their stocks drop, reflecting the sector's overall sentiment. Pegasystems is trading 29% below its year-to-date high at $39.80 per share, down from a 52-week high of $66.64. Investors who purchased $1,000 worth of Pegasystems shares five years ago would now see their investment valued at $591.03.