Software Blowups Sow Fears That AI Boom Is Leaving Some Behind
- Salesforce and Workday saw steep selloffs on weak forecasts
- Tech’s 2024 rally has come as AI chipmakers offset software
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The stock-market carnage keeps piling up for software companies that disappoint Wall Street, fanning fears that the artificial-intelligence arms race is creating a new generation of winners and losers.
Already this year, a stark divergence has built up within the Big Tech complex — an index of software stocks is in the red, while a gauge measuring chipmakers’ shares has rallied 24%. Clearly, impatience is mounting with companies that fall short of expectations at a time when chipmakers and other hardware firms look set to reap profits from their investments in AI.