Salesforce.com (CRM) shares plummeted 5.02% during intraday trading on Wednesday, marking a significant decline for the software giant.

The drop reflects mounting investor concerns that the proliferation of artificial intelligence could disrupt the traditional software industry. This sentiment was compounded by the company's previously issued second-quarter revenue guidance that fell short of Wall Street expectations. Salesforce guided for Q2 revenue between $11.27 billion and $11.35 billion, below the consensus estimate of $11.4 billion.

Multiple Wall Street firms have recently lowered their price targets on the stock, contributing to the negative pressure. The broader application software sector also traded lower, indicating these concerns are affecting the industry at large as companies navigate the transition to AI-powered business models.