Waiting For AI Winners To Emerge

Currently, rising chip prices and capacity buildouts are shifting momentum toward semiconductor equipment stocks, even as large language models (LLMs) become commoditized.

AI infrastructure has been a key driver of market gains for more than a year now. But we believe the bigger test for AI is coming into view, and it won't be centered around capacity or pricing. It'll be what Summary - Currently, rising chip prices and capacity buildouts are shifting momentum toward semiconductor equipment stocks, even as large language models (LLMs) become commoditized.

- Global growth is holding up, and semiconductor earnings may be peaking, which could leave room for other sectors to catch up. - Longer term, from railways to the internet, the companies that built on top of new technology have historically captured the real value. AI may follow suit.

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