Here's a puzzle that should make every investor's head hurt: AI stocks are crashing because AI is overhyped. And software stocks are crashing because AI is going to disrupt them.

Both narratives can't be true at the same time. Yet somehow, Wall Street is selling both stories simultaneously.

Let's break down the contradictions:

Narrative #1: AI is a bubble

Companies like Google, Meta, Microsoft, and Amazon are all down 20%+ from recent highs. The reason? Investors are panicking about massive AI spending ($200 billion from Amazon alone) without seeing proportional revenue.

The market is saying: "These companies are wasting money on AI infrastructure that might not pay off. It's the fiber-optic cable boom all over again."

Narrative #2: AI is going to disrupt everything

Meanwhile, software companies like Salesforce, Adobe, ServiceNow, and Intuit are also getting crushed. The reason? Fear that AI will let anyone build software, eliminating the need for expensive enterprise platforms.

The market is saying: "AI is so powerful it's going to make traditional software obsolete."

So which is it? Is AI overhyped garbage, or is it a revolutionary force? It can't be both.

What's actually happening: Fear-driven contradictions

Here's my read on this mess: The market isn't being rational—it's being scared. When investors panic, they don't need consistent narratives. They just need reasons to sell.

Think about it: If AI really is powerful enough to disrupt Salesforce, then why would Google's AI investments be worthless? If Google's AI spending is a waste, then why would Adobe be threatened?