Wall Street Says Forget AI Chips, and Buy AI Software Stocks Instead for 2026

2026-03-01 23:20:00 ET

If you've been confused about the share price movements of some artificial intelligence (AI) stocks, join the club. Investors have been on a treasure hunt lately, seeking tech companies poised to benefit from massive AI disruption, but no one can really agree on what that looks like. Some think hardware-based companies will remain the leading AI stocks, while others are opting for software.

A recent HSBC report leans toward the latter. An analyst at the bank, Stephen Bersey, said recently that 2026 will be "the kick-off for monetization within software" for AI and the largest long-term share of value is in AI software, not hardware.

Here's why it's probably best to have a little of both.

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