AI Risks Will Widen Gap Between Chips, Software: Markets Pulse

A broad advance in technology stocks this earnings season will mask a growing divergence between software and hardware names, the latest Markets Pulse survey shows.

Of 122 respondents to a poll conducted April 24-28, 65% said the Bloomberg Magnificent Seven Index has room to run higher once the reporting period concludes. Yet participants were split over the magnitude of gains, as artificial intelligence developments drove a wedge between software service providers and companies that produce tangible technology assets.