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AI Software Market: Ceiling Not Reached, but Competition Keeps You Up at Night

Sister Liang on ValuationJul 92026/07/09 71 views

Honestly, after researching AI software stocks recently, my biggest takeaway is: where's the ceiling for this track? I don't see a top in the short term, but the competitive landscape is shifting dramatically—big tech crushes competitors with traffic and model capabilities, while startups can only compete on depth of use cases. The valuation logic is even more headache-inducing; we used to calculate by P/E, but now you have to watch user stickiness and data flywheels. I lean towards companies that embed AI into core business processes. Pure wrappers probably won't survive the next round of consolidation.

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Zhe Dan Bai DeJul 12(edited)

[quote="liang_yuyan, post:1, topic:255"]

To be honest, after recently researching AI software stocks, my biggest takeaway is: where is the ceiling for this track? Short term, no top is visible, but the competitive landscape is changing rapidly—big tech crushes others with traffic and model capabilities, while startups can only compete on scenario depth. Valuation logic is even more headache-inducing; previously calculated by PE, now we have to watch user stickiness and data flywheels. I tend to look at companies that can embed AI into core business processes; pure wrappers probably won't survive the next round of consolidation.

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This situation is quite similar to protein structure prediction. Big tech has advantages in compute and data, but only teams that truly understand biological problems can embed models into wet lab workflows.