The tech sector looks set for an everything rally Thursday. Well, almost everything.
Nvidia's blowout earnings and a flurry of encouraging results from software companies, including Salesforce and Okta, have reignited the artificial-intelligence trade.
But some of the biggest U.S. tech companies were set to miss out. Apple and Microsoft were both down more than 1%, while Alphabet, Amazon, and Meta Platforms were all down less than 0.5%. Those aren't huge moves, but they are notable on a day when Nvidia is jumping more than 7%.
Apple stock has been seen as an anti-AI play in recent months. That's all very well when the AI trade falters-the company surpassed Nvidia as the world's most valuable company temporarily last month. But means it's likely to miss out on days like today. Other stocks in the so-called Magnificent Seven group of megacaps, including Microsoft and Alphabet, have also appeared to be more defensive plays at times.
Investors have frequently rotated from software into chips, and sometimes vice versa, this year. But with both sectors surging ahead of the open Thursday, the money has to be moved somewhere.
And that somewhere is Big Tech.
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