Stock prices are very forward looking, so if half the hype being sold about AI is true I would expect most software-centric companies to be devalued by wall-street (as the test, deploy, support should be automated in the coming years...according to the AI CEO's).
However, if I was a wall street analyst and believed the AI dreams I would further be concerned that software companies aren't taking advantage of the last remnants of value before software (and maybe labor) values go to zero.
If you've got a gold mine and have recently built the most efficient shovels in the world, why are they not bringing in mass amounts of workers to utilize these shovels before all the neighboring mines. Once all that gold is on the market, the price crashes so it's better to be one of the first mines to get in and dig out all possible value first.
I think you either don't believe in the AI hype, which means a lot of silicon valley companies are tremendously overvalued. Or you do, in which case another huge part of silicon valley is overvalued especially when they are not looking to out-innovate their peers (as evidenced by downsizing), but just riding the wave of AI until what they are selling has no marginal value over some guy coding alone in his bedroom. SV is putting itself into a weird position, but still has some time for financial buffoonery before the party stops.