Adobe Inc. (ADBE) shares plummeted 5.01% during intraday trading on Thursday, extending a significant year-to-date decline for the software giant.

The sharp drop reflects mounting investor concerns about the disruptive impact of artificial intelligence on Adobe's core businesses. Market anxiety is particularly high ahead of the company's second-quarter earnings report scheduled for release after the closing bell. Analysts and investors fear that Adobe's successful generative AI products, like the Firefly suite, are cannibalizing its traditional Adobe Stock business as customers shift toward AI-generated content.

The sell-off is part of a broader pressure on software stocks, with the sector being the worst performer in the S&P 500 recently. Adobe's stock has fallen 32% this year, and it has a poor track record following earnings, having declined in nine of its last eleven post-earnings sessions. Multiple investment banks have recently lowered their price targets on the stock, contributing to the negative sentiment.