‘A Market Reset Is Coming for AI,’ Says Bill Gurley

FomoAnxiety · 2026-03-17T00:46:58+00:00

Bill Gurley warns of an impending market reset due to the surge in AI investment, suggesting that bubbles form with genuine disruptors. He notes current pressures on tech companies but encourages investors to target undervalued software stocks for future gains.

FomoAnxiety

2026-03-17 00:46:58

Abstract generation in progress

Benchmark partner Bill Gurley recently said that the surge in artificial intelligence investment is real, but he believes that a market reset is coming. Speaking on CNBC’s Money Movers, Gurley explained that when people see others getting rich quickly, many more investors rush in with hopes to do the same. That surge of money often causes bubbles to form whenever there’s a new technology. However, he also pointed out that bubbles typically appear only when the underlying technology is a genuine disruptor.

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To explain this idea, Gurley referenced the work of economist Carlota Perez, who wrote the book Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages. Her research shows that major technological breakthroughs often bring both high levels of investment and financial bubbles. In Gurley’s view, artificial intelligence fits that pattern because the technology itself is real and transformative. As a result, even if markets eventually cool down, the broader AI wave is still likely to continue shaping the economy.

At the same time, parts of the technology sector are already facing pressure, especially software companies. For instance, Salesforce CRM +2.80% ▲ and ServiceNow NOW +1.12% ▲ have each dropped about 25% so far in 2026, while the iShares Expanded Tech-Software Sector ETF IGV +0.90% ▲ , which tracks the industry, is down around 20% this year. Interestingly, Gurley said that if a broader reset occurs, investors should already have price targets for beaten-down software-as-a-service companies and be ready to buy them.

Is IGV Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on IGV stock based on 89 Buys, 23 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IGV price target of $117.65 per share implies 38.6% upside potential.

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