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Goodbye hero stock, hello diversified chips, cloud and software AI investments?
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Analysts argue that incumbent software systems are complex and hard to replace.
PHOTO: AFP
- Fears of AI disruption caused a US$2 trillion software sector sell-off in early 2026, despite strong earnings, as investors question long-term sustainability.
- Experts note high software switching costs, but rising AI spending and concentration risks in Magnificent 7 stocks concern investors.
- Investors should diversify AI exposure across value chains, other sectors, geographies, and asset classes, or use ETFs, to manage volatility.
AI generated
SINGAPORE – Artificial intelligence has become the defining investment theme in recent years, reshaping industries from healthcare to finance and opening new growth avenues.
Yet the market’s enthusiasm has not been without turbulence, as investors sift through companies that can harness the technology and those that cannot.
