The AI market is undergoing a significant transition, as indicated by a recent drop in the stock values of prominent U.S. software companies. Over the past week, the S&P 500 software and services group has lost approximately $1 trillion in market value. Key players like ServiceNow Inc., Salesforce Inc., and Microsoft Corp. have been particularly affected as investors question the sustainability of legacy software models in light of rapidly advancing AI technologies.
This change marks a shift from the initial phase of AI, which focused on scale and speed, to a new phase prioritizing profitability and real economic advantage. Companies projected to invest $650 billion on AI-related infrastructure this year, including Alphabet Inc. and Amazon.com Inc., have collectively lost over $950 billion in market value recently, reflecting the market’s reevaluation of value creation in the AI sector.
As the market adapts, smaller companies specializing in AI infrastructure may become the next leaders, indicating that savvy investors will need to recognize and respond to this evolving landscape to capitalize on future opportunities.
