Look at the past month for Israel's veteran listed software companies and you will find a pattern. Amdocs fell to its lowest level since 2014 after its second-largest customer, T-Mobile, threatened to leave and the company forecast up to an 18% revenue decline. Fiverr reported its active buyers fell 25.8% in a year. Perion is being sold to India's Affle for $420 million after years of erosion. And monday.com reports today with growth slowing and its stock down sharply this year.
Each tells a slightly different story, but they share one thing: they were built in an era when software itself was the advantage. Amdocs built complex systems only it could maintain. Fiverr connected people needing work with people who could do it. monday.com sold a work management tool priced per user. In each case, AI is eating exactly where the company made its money.
The responses differ. monday.com chose painful surgery: cutting about 20% of its workforce and moving to an agent platform. Fiverr is leaning on business services and admits traffic to its marketplace will keep falling. Amdocs is trying to diversify into insurance, but the T-Mobile crisis shows how dependent it still is on a few customers. And Perion chose the simplest solution: to be sold.
On the other side of the map are companies benefiting from exactly the same shift. Nova, Camtek and Tower posted record quarters because AI needs chips. JFrog jumped because AI agents write more code that needs managing. Young cyber companies raised billions. Israeli tech is not weakening, it is splitting: those selling the AI era's infrastructure grow, and those selling work AI can do struggle.
The big question is what happens to the veterans in the coming years. Some will reinvent themselves, as Israeli companies did in earlier technology shifts. Some will be sold, often far below their peak valuations. And some may shrink quietly. For the thousands working at these companies, and the Israeli savers who hold them through pension funds, it is not a theoretical question.
