Jordi Visser from 22V Research argues that AI is not just another growth driver but a deflationary regime shift in software, collapsing entry barriers and undermining long-duration valuation models that relied on recurring revenue and scarcity.

He highlights that 185 stocks in the iShares Expanded Tech-Software Sector ETF have posted more than 15% absolute year-to-date moves, double the 81 seen at this point last year and only matched twice in 30 years during the dot-com bust and global financial crisis.

Visser warns that rising equity dispersion typically precedes wider credit spreads, forecasting sustained volatility as credit markets price in lower revenue expectations, while physical infrastructure, commodities, industrials and hardware could emerge as structural winners in the new AI era.