5 Stocks That Will Collapse Because of AI

3. GitLab Inc. (NASDAQ:GTLB)

Within just one week, GitLab Inc. (NASDAQ:GTLB) has seen three downward target price revisions. Bank of America Securities lowered its price target on the firm from $58 to $27. RBC Capital did the same, lowering its price target from $33 to $25. UBS also cut its price target to $24 from $44. These are alarming downgrades and show how much of a threat AI has become, even for companies that are integrating it within their offerings.

On March 23, William Blair analyst Jason Ader double-downgraded GitLab Inc. (NASDAQ:GTLB) from Outperform to Underperform without providing a price target. The firm also downgraded several other infrastructure software stocks, citing rising uncertainty in the sector driven by artificial intelligence. It believes the industry is undergoing a major transition, in which companies will need to rethink their pricing strategies, products, and how they sell to customers. According to the analyst, AI has created ongoing uncertainty in the software space, and this situation is unlikely to improve in the short term. The stock’s downtrend, which began early last year, continues to erode investor returns.

GitLab Inc. (NASDAQ:GTLB) develops software tools that support the entire software development process across Asia-Pacific, the United States, and Europe. The company offers GitLab, a single platform for DevSecOps, as well as GitLab Duo Agent Platform. It was incorporated in 2011 and is headquartered in San Francisco, California.