U.S. investors pivot to infrastructure amid AI sell-off

The article reports that some U.S. investors are shifting from AI software leaders to infrastructure companies and new ETFs that target chipmakers, data‑centre builders and power firms as AI capital spending rises.

Some U.S. investors are moving away from high‑valuation AI software leaders and toward companies that provide the physical equipment and services behind AI, the article reports. This shift follows recent declines in shares of major AI firms and rising investor interest in firms tied to AI capital spending. Asset managers and ETF providers have responded by launching and reconfiguring products focused on AI infrastructure. Several infrastructure‑oriented stocks and ETFs have shown positive returns this year. Key points: - The article reports that concerns about lofty valuations in AI software leaders have coincided with a rotation into infrastructure plays that supply chipmakers, data centres and utilities. - The article mentions specific companies seeing gains, including Caterpillar, Lumentum and Western Digital, and notes that some ETFs include chipmakers such as SK Hynix, Micron and Intel. - The article says ETF providers including VistaShares, BlackRock and Impax have launched or adjusted funds to target AI infrastructure, and it cites performance figures such as VistaShares’ Artificial Intelligence Supercycle ETF (up strongly in 2025 and higher this year) and BlackRock’s fund increasing its infrastructure exposure to 74% of assets. - The article notes estimated AI capital spending of about US$630 billion this year and that funds focused on related infrastructure have attracted significant new capital. - The article includes cautionary comments comparing the current build‑out to past over‑investment in fibre networks in the 1990s and cites a Glenmede strategist urging prudence. Summary: The article describes a measurable shift in investor interest toward firms supplying the hardware and services that support AI, and it links that trend to fresh ETF launches and notable stock moves. How sustained the rotation will be and how valuations for infrastructure names evolve is undetermined at this time.