AI Exacerbates Tech Divide With Smaller Stocks Languishing
C3.ai plummeted this week in the wake of results that it called “completely unacceptable.”
Photographer: SOPA Images/Getty ImagesThe massive outlays required to compete for artificial intelligence riches have widened the performance gap between large and small tech shares.
A measure of smaller tech stocks is trailing a gauge of large-cap shares by the widest margin according to data compiled by Bloomberg going back 30 years. While Microsoft Corp. and Nvidia Corp. have soared 24% and 36% this year, respectively, boosting the large-cap tech index 16%, the small-cap tech index is down 1%.