NEW YORK — The latest U.S. technology rally is showing a more selective character as investors move money toward companies they believe can demonstrate strong artificial-intelligence demand while questioning other parts of the software industry.
Recent trading has highlighted significant differences among technology companies, with Nvidia, CrowdStrike and Salesforce attracting strong investor interest after earnings while some other software businesses have faced pressure from concerns that AI could disrupt traditional subscription models.
AI Is Creating Winners and Losers Within Big Tech
The early AI rally was often treated as a broad technology trade.
That approach is becoming more difficult to justify.
Companies are now experiencing very different effects from the AI revolution.
Chip manufacturers benefit from demand for computing infrastructure.
Cybersecurity companies can use AI to improve threat detection.
Enterprise software providers are attempting to build AI agents into their products.
Other software companies face a more difficult situation.
If customers can use AI to perform tasks previously handled by specialized software, some traditional products could lose pricing power.
That creates a new form of competition within the technology industry.
Investors are therefore looking more closely at individual business models.
The market is beginning to distinguish between companies that sell the infrastructure required for AI and those whose products could potentially be disrupted by it.
This could become one of the most important themes for U.S. technology stocks during the remainder of the year.
For American investors, the message is increasingly clear: owning technology stocks is no longer enough to capture the AI trend.
Investors need to understand which companies are actually benefiting from the transformation.
