AI Rally Leaves Megacap Tech Stocks Lagging Behind Chipmakers
Megacap tech stocks are underperforming in the latest AI rally as investors flock to chipmakers and software winners.
Nvidia (NVDA) has led the charge after its quarterly results exceeded market expectations, sending its stock price soaring. Other beneficiaries of the AI money include Salesforce and Okta, which have also seen significant gains due to their direct exposure to AI-related growth.
The uneven performance is a reflection of differing investor concerns across the technology sector. Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) are investing heavily in data-center capacity, but there are questions about how quickly these investments will translate into earnings.
Apple (AAPL) has a different spending profile, allocating less to large-scale AI computing infrastructure than the major cloud operators. This can leave its stock less responsive when investors focus on AI infrastructure beneficiaries.