Tyler Technologies shares fell 15.39% as investors reacted to broader concerns that AI tools could displace traditional enterprise software functions. The sharp decline marked one of the steepest drops in the S&P software index during a week of intense selling pressure.

JPMorgan strategists identified Tyler as one of 19 high-quality software names deemed “AI-resilient,” highlighting its multi-year customer contracts, high switching costs and established revenue base. The firm argued that markets have priced in unrealistic near-term disruption risks for such names.

With software stocks entering oversold territory, JPMorgan believes the balance of risks favors a rotation back into resilient businesses like Tyler. The bank sees solid fundamentals and flush investor positioning as catalysts for a potential rebound in these select names.