Krux
February 10, 2026
AI Investors Ditch Software, Go All-In on Hardware
Published: February 10, 2026 at 12:45 AM
Updated: February 10, 2026 at 12:45 AM
100-word summary
The AI trade is splitting hard. Investors are rotating out of software stocks—spooked by AI disruption fears and $600B+ hyperscaler capex plans—and piling into hardware enablers. Samsung and SK Hynix are up 32% and 29% year-to-date on memory-chip demand. Meanwhile, U.S. names like ServiceNow and Salesforce tanked after Anthropic's Claude plug-ins threatened to automate workflows. Even the Magnificent 7 is fracturing as scrutiny over AI spending returns intensifies. This could reshape tech portfolios for years: picks-and-shovels over platforms.
What happened
The AI trade is splitting hard. Investors are rotating out of software stocks—spooked by AI disruption fears and $600B+ hyperscaler capex plans—and piling into hardware enablers. Samsung and SK Hynix are up 32% and 29% year-to-date on memory-chip demand. Meanwhile, U.S. names like ServiceNow and Salesforce tanked after Anthropic's Claude plug-ins threatened to automate workflows. Even the Magnificent 7 is fracturing as scrutiny over AI spending returns intensifies.
Why it matters
This could reshape tech portfolios for years: picks-and-shovels over platforms.