economy
February 18, 2026
Searching software for value as shares get pummeled. UBS found four stocks it likes
As software stocks are battered amid the artificial intelligence threat, UBS likes HubSpot, Microsoft, ServiceNow and Autodesk.
TL;DR
- UBS analysts believe Microsoft, ServiceNow, Autodesk, and HubSpot are well-positioned to thrive despite a broad software stock downturn.
- These companies are seen as beneficiaries of international economic growth and a weaker U.S. dollar.
- UBS notes that these recommended stocks have price-to-earnings ratios below their historical averages and have experienced positive earnings revisions.
- The software sector sell-off was intensified by AI advancements, but UBS suggests these specific stocks may decouple from AI-related credit spread concerns.
- Despite recent significant stock price declines for all four companies, UBS maintains buy ratings on them.
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