The AI trade isn’t broken — it’s rotating from chip scarcity to infrastructure spend
Broadcom’s stumble looks less like the end of the AI trade than a handoff inside it. The market is starting to reward the next bottlenecks — servers, networking, cooling, and power — as AI capex broadens beyond the most crowded chip winners.
The clean read on this week’s tape is that the AI trade is changing leaders, not falling apart. Broadcom’s post-earnings selloff gave bubble skeptics an easy headline, but the more important signal was the split beneath it: semis cracked while infrastructure names kept attracting capital. That is what rotation looks like when a theme matures. Once chip scarcity stops being the only story, investors naturally start paying up for the companies that have to house, connect, cool, and power the next wave of AI capacity.
