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ChipsThe story, in brief

The chip and memory stock frenzy

While everyone chases the next model, semiconductor stocks are quietly outpacing software. Here's why.

Reporting by Financial Times Technology 1 min brief
Paper-cut illustration of an amber microchip with circuit paths extending into a row of data-center cabinets.
The infrastructure powering AI.AI illustration by KeyNews
The KeyNews take

Why it matters

As AI model development plateaus relative to infrastructure demands, capital and investor attention are shifting toward chip and memory manufacturers—the unglamorous but essential backbone of AI deployment at scale.

The key facts

4 to know

  1. Semiconductor stocks outperforming AI software stocks (May 2026)

  2. Software AI spending growth decelerating relative to hardware infrastructure needs

  3. Memory and chip manufacturers becoming critical bottleneck in AI scaling

  4. Market shift away from model-focused narratives toward infrastructure/capex plays

Go to the source

Financial Times Technologyft.com

Publisher excerpt: As software lags, semiconductors catch up to the AI spending
Read original report
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