Chipmakers Outshine Big Tech in the Artificial Intelligence Rally

Chipmakers are outperforming many of the biggest technology companies in the artificial intelligence rally, as investors shift attention toward the hardware enabling rapid advances. Demand for advanced processors, memory, packaging, and networking equipment has lifted semiconductor stocks and strengthened expectations for industry earnings. Meanwhile, some software and internet companies face questions about high valuations, heavy infrastructure costs, and uncertain returns on AI spending. The divergence highlights how the rally is spreading beyond familiar technology leaders to the suppliers powering it.