Tech’s Buy-Chips, Sell-Software Trade Unravels as Trillions in AI Spending Face Doubts
Updated
Updated · Bloomberg · Jul 9
Tech’s Buy-Chips, Sell-Software Trade Unravels as Trillions in AI Spending Face Doubts
3 articles · Updated · Bloomberg · Jul 9
Summary
Software stocks are rebounding after months of pressure, signaling that the crowded 2026 trade of buying chipmakers and shorting software is breaking down.
Investor doubts over whether trillions of dollars in planned AI capital spending will actually be deployed are hitting chip stocks, which had led the market higher this year on AI demand.
That reversal also reflects easing fears that AI will undercut software companies’ growth, a concern that had battered the sector for months.
The shift builds on signs seen earlier this week that software was regaining relative strength against semiconductors as investors reassessed AI winners and losers.