Good morning. “You can either watch this thing, embrace this thing, or get run over by it.” That was the advice Cisco CEO Chuck Robbins offered to business leaders about AI on Tuesday, during a special “AI Summit” that the company hosted in San Francisco.
If the market is any indication, investors don’t seem to think businesses are heeding Robbins’ advice. Tech companies, particularly software companies, got battered Tuesday on fears that AI is set to make traditional software products unnecessary. Why pay for Salesforce (whose stock fell 6.8%), or Adobe (down 7.3%), the thinking goes, when you can simply vibe code your own versions of their products with AI? Then again, lots of AI-centric companies got swept into the selloff too, including Figma (down 10.9%) and Microsoft (down 2.9%).
One company that defied the trend was Cisco, whose stock finished the day up 3%. Apparently, Wall Street decided to spare the messenger.
Today’s news below.
Alexei Oreskovic@lexnfxalexei.oreskovic@fortune.com
