Software’s AI Suffering Expands to Chipmakers
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US markets went for a bit of a wild ride on Wednesday, with chipmakers and other tech giants joining battered software makers in falling amid fears artificial intelligence will wreak havoc on business models and white collar jobs.
Since reaching an all-time high in October, the S&P 500 software group has plunged more than 25%, though some have suggested the shift is a long overdue rotation rather than an existential AI threat. After Tuesday’s wipeout, the broader tech space got caught up in the selling today. In late hours, Alphabet reported solid sales but said it planned to spend far more than investors expected, while Qualcomm gave a middling revenue outlook.