Famed investor Michael Burry is investing in beaten-down software stocks, believing the recent sell-off is due to technical reasons rather than business fundamentals. He cited a "reflexive positive feedback loop" between falling equity prices and stress in bank debt tied to software companies as the reason for his decision to buy the stocks. This comes amid concerns that artificial intelligence could disrupt the software industry, challenging business models and long-term growth assumptions. The iShares Expanded Tech-Software Sector ETF has dropped about 28% from its peak, leading to a potential for a bear market.