A handful of big tech players, including Apple and AMD , could end 2024 with strong returns after a slow start to the year, according to Melius Research. "In 1H23 we saw big moves in many of the stocks that were deemed 'AI winners' before some had a 2H23 pause....Could we be in for a replay where some laggards pick up? We think so," Melius analyst Ben Reitzes said in a research report on Monday.
Infrastructure software supports the computing environment and, according to the analyst, looks more attractive compared to application software, which focuses on helping the user perform specific tasks. "Application software is still threatened long-term by AI factories and coding tools that will make it easier to create apps and companies may see some challenges charging extra for AI tools given compounding inflation.