US Chip Darlings Struggle, Software Sees Rise in AI Play
U.S. chip stocks have stumbled this year, with investors shifting their focus to software companies in search of the next big thing in artificial intelligence. The emergence of lower-cost AI models from China's DeepSeek has dimmed demand for semiconductors, while several analysts see software's rise as a longer-term evolution in the AI space. As attention shifts away from semiconductor shares, some investors are betting on software companies to benefit from the growth of AI technology.
- The rotation out of chip stocks and into software companies may be a sign that investors are recognizing the limitations of semiconductors in driving long-term growth in the AI space.
- What role will governments play in regulating the development and deployment of AI, and how might this impact the competitive landscape for software companies?