AI lifts some software stocks, leaves others behind - who's winning and losing and why

The article discusses the impact of AI on the software industry, highlighting the winners and losers. Investors are favoring companies that provide the underlying infrastructure for AI, rather than those simply adding AI features to existing products. The article notes that stocks of firms like Nvidia, Broadcom, and Marvell, which manufacture chips and hardware for AI, have surged in recent months. In contrast, stocks of software companies that have added AI capabilities to their offerings, such as Microsoft, Salesforce, and Workday, have not seen the same level of investor enthusiasm. The key takeaway is that investors are recognizing the value of the foundational technology that enables AI, rather than the mere integration of AI into existing software. Companies that are powering the AI revolution, through their hardware, cloud services, and other infrastructure, are being rewarded by the market, while those simply adding AI features are not seeing the same level of investor interest.