By Lisa Pauline Mattackal and Johann M Cherian
March 6, 2025 – 7:47 AM PST
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(Reuters) – U.S. chip stocks were the biggest beneficiaries of last year’s artificial intelligence investment craze, but they have stumbled so far this year, with investors moving their focus to software companies in search of the next best thing in the AI play.
Tariff-driven volatility and a dimming demand outlook following the emergence of lower cost AI models from China’s DeepSeek have shifted the spotlight away from semiconductor shares.
Several analysts see software’s rise as a longer-term evolution as attention shifts from the components of AI infrastructure.
There has been a pretty clear rotation in part due to DeepSeek, the semiconductor outperformance last year and restrictions on U.S. chip exports to…
