Wall Street’s AI doomsday trade is here: chipmakers sink while hyperscalers gain
Nvidia fell more than 3% while Meta, Microsoft and Alphabet rose, as investors begin to separate the companies that need endless AI capex from those that could profit by cutting it.
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# AI Market Rotation Reshapes Tech Valuations Nvidia declined over 3% while hyperscalers Meta, Microsoft, and Alphabet gained as investors rotated away from chipmakers facing slowing AI spending toward cloud giants positioned to reduce capital expenditures and improve profitability. The shift reflects market recognition that the infrastructure build-out phase may be plateauing, benefiting companies that can monetize AI applications over those dependent on continued explosive semiconductor demand.
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