Skip to navigationSkip to main contentSkip to right columnAditya RaghunathThu, July 2, 2026 at 11:47 PM GMT+2 4 min readSoftware used to be the safe bet in artificial intelligence. Buy the companies writing the code, sit back, and let subscription revenue do the work.That trade has come undone. While the iShares Expanded Tech-Software Sector ETF sits about 20% below its record high, the chipmakers building the AI data centers are having one of the best stretches in stock market history.Micron, Intel, and Advanced Micro Devices all posted gains north of 100% in the second quarter. In addition to an expanding earnings base, investors are chasing order books and a supply squeeze that executives say could last years.Why money is leaving software for siliconThe shift comes down to a simple idea on Wall Street. Everyone building AI needs the same scarce ingredients, and chipmakers are benefiting from a surplus of demand. Barclays analyst Anshul Gupta summed it up in a note published Tuesday, June 30, writing that the rotation out of AI hyperscalers and into AI enablers has pushed investor enthusiasm into semiconductors, fueling dramatic rallies, according to CNBC.Micron (MU), Intel (INTC), and AMD (AMD) gained a combined $2 trillion in market value during the quarter and now rank among the 10th, 11th, and 12th-most valuable technology companies in the country, CNBC reported.More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizations