WS #16456
The AI trade is bifurcating: hardware suppliers are seeing massive inflows, with Micron up 4.3% and Vertiv surging 13% following strong earnings reports. Conversely, software and diversified tech names are facing valuation resets, as Evercore ISI slashed price targets for ServiceNow and Danaher. This divergence suggests investors are prioritizing tangible AI infrastructure revenue over speculative software growth in the current rate environment.
AI Hardware Rally vs Software Valuation
The AI trade is bifurcating: hardware suppliers are seeing massive inflows, with Micron up 4.3% and Vertiv surging 13% following strong earnings reports. Conversely, software and diversified tech names are facing valuation resets, as Evercore ISI slashed price targets for ServiceNow and Danaher. This divergence suggests investors are prioritizing tangible AI infrastructure revenue over speculative software growth in the current rate environment.