US Stocks Split: Software Soars as Chip Names Sink on AI Doubts
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A sharp divergence is splitting the US stocks landscape as software outperforms chips by a historic margin. CrowdStrike and Palo Alto Networks led the cybersecurity and enterprise software cohort to fresh highs, even as broader AI anxiety gripped markets.
On the other side of the trade, Micron and Nvidia dropped after prominent tech leaders publicly called for a more measured pace of AI development. Analysts note this doesn't necessarily signal a pullback in data-center capex, but sentiment has clearly shifted.
The rotation suggests investors are differentiating between AI infrastructure plays exposed to hardware cycles and software firms with recurring revenue models less sensitive to capex swings.