WS #15565
A rotation away from broad technology is underway, with the QQQ lagging as investors digest OpenAI's revenue miss and new regulatory probes into Alphabet and Block. However, the AI infrastructure layer remains robust, evidenced by Micron's record earnings and a $2.4B federal AI mission commitment. This divergence suggests a 'picks and shovels' rally in semiconductors and data centers, while software and consumer-facing AI models face margin pressure and regulatory headwinds.
Tech Rotation & AI Divergence
A rotation away from broad technology is underway, with the QQQ lagging as investors digest OpenAI's revenue miss and new regulatory probes into Alphabet and Block. However, the AI infrastructure layer remains robust, evidenced by Micron's record earnings and a $2.4B federal AI mission commitment. This divergence suggests a 'picks and shovels' rally in semiconductors and data centers, while software and consumer-facing AI models face margin pressure and regulatory headwinds.