AI Selloff Looms Unstoppable; Tech Shares Plunge After Automation Fears, Barclays Warns

Barclays warns the current sell-off in AI and software stocks, driven by automation fears, could become an unstoppable near-term momentum with no clear catalyst. The bank noted a “no mercy” environment for “AI losers,” with at least $400 billion in market cap wiped off within days of Anthropic releasing add-ons for legal and financial services plug-ins. Microsoft’s stock fell 16% from $480 on Jan. 28 to over $400 as of Feb. 13. Microsoft AI CEO Mustafa Suleyman told Reuters in a Thursday interview that professional services tasks, including legal and accounting work, are likely to be fully automated within 12–18 months, intensifying near-term volatility.