The long‑standing 2026 strategy of buying chipmakers while selling software companies is unraveling. Investors who once pushed chip stocks to record highs are now reassessing the growth prospects of AI‑driven silicon.

Software names that lingered under a cloud of AI‑driven risk are gaining fresh traction. Earnings momentum and renewed analyst coverage are lifting the sector back into the spotlight, breaking a multi‑month slump that had forced many to sell.

Chipmakers, which powered the market’s recent rally, face renewed scrutiny over the scale of planned AI capital expenditures. Analysts question whether the projected trillions in spending will materialize, and stock prices are bleeding as confidence wanes.

For portfolio managers, the shift signals a need to realign exposure. The divergence underscores the importance of monitoring AI‑budget announcements and market sentiment, as misjudging the balance between semiconductor and software growth can erode returns.