The extraordinary rally in artificial intelligence chipmakers is showing signs of losing momentum as investors reassess lofty valuations and question whether the rapid pace of spending on AI infrastructure can be sustained, according to Reuters.
For much of the past two years, investors overwhelmingly favored semiconductor and infrastructure companies, betting that technology giants including Microsoft, Amazon, Alphabet and Meta would continue ramping up investments in AI data centers. That strategy helped propel chipmakers to record valuations as demand for AI hardware surged.
