Chipmakers or Software? Steve Sosnick Weighs In on AI Stocks and Sell-Off Risks

Steve Sosnick of Interactive Brokers takes on a rapid-fire “This or That” discussion covering some of the biggest questions facing AI investors.
Which could deliver the next wave of AI gains: chipmakers or software companies? And which stock is more vulnerable to a market sell-off: Nvidia ($NVDA) or Palantir ($PLTR)?
As investors reassess AI valuations, infrastructure spending, and the sustainability of recent gains, the distinction between AI hardware providers and software companies is becoming increasingly important.
Both $NVDA and $PLTR offer exposure to the AI theme, but their business models, valuations, and risk factors differ. The next market rotation could create opportunities across both segments while exposing highly valued stocks to sharper pullbacks.