AI spending worries crush Big Tech while chip suppliers boom — long the real AI winners
The giant tech companies lost trillions in value in June because investors are worried about how much they're spending on AI. But the companies that actually make the physical computer chips for AI are seeing record-breaking growth, meaning investors are shifting their money from the software giants to the hardware suppliers.
Idea
The 'Magnificent Seven' tech giants lost $2.3 trillion in value in June because investors are questioning their massive AI spending. However, the physical chipmakers like Micron, Intel, and AMD just added $2 trillion in value during the exact same quarter. This combination suggests investors aren't abandoning AI; they are just shifting their money away from the expensive software giants and into the hardware suppliers who are actually seeing the direct revenue growth. If we see another rocky month for the big tech stocks, the chipmakers are likely to be the safe haven for tech investors.