Wall Street's AI Trade Is Starting To Shift As Chip Stocks Lose Momentum. Software Shares Are Regaining Ground

Source: International Business Times

Software stocks have gained momentum after spending much of 2026 under pressure from concerns that artificial intelligence would weaken the industry's long-term growth prospects. Software stocks have gained momentum after spending much of 2026 under pressure from concerns that artificial intelligence would weaken the industry's long-term growth prospects. At the same time, semiconductor shares, which fueled much of the market's advance this year on expectations of massive AI-related spending, have pulled back as investors reassess whether planned investments in AI infrastructure will fully materialize, Bloomberg reported.