Understanding the AI Selloff: The Infrastructure vs. Software Divide

Software Faces Disruption. Infrastructure Faces a $500 Billion Boom.

The AI stock market just lost nearly $1 trillion in value over the past week. Software stocks have been hammered, with the S&P 500 software index down over $800 billion since late January. Even chip giants like Nvidia (-9%), Broadcom (-7%), and AMD (-15%) got caught in the downdraft.

But here’s the thing: the fundamentals driving AI infrastructure spendi…