AI Stocks Checkup: Weekly Moves And Who's Leading Or Lagging In 2026

• Hardware stocks are outperforming software, with memory chip makers like Micron surging 45% in January 2026 on improved pricing, while software leaders like Palantir (-18%), Oracle (-15%), and Salesforce (-12%) have retreated significantly
• The AI accelerator market is shifting from training AI models to 'inferencing' (running AI applications), with Nvidia potentially in a trading range until next-generation 'Vera Rubin' chips ramp up production
• Investor concerns about an AI bubble center on massive debt for data center buildouts, infrastructure depreciation impacts on earnings, loan securitization, ecosystem 'circularity,' and U.S. electrical grid capacity lagging China's amid power-hungry data center expansion

AI Stocks Summary: Leaders and Laggards Shift in Early 2026

Key Market Developments

One month into 2026, AI stock performance has diverged significantly from 2025 trends. The sector faces increased volatility ahead of major earnings reports from Palantir Technologies and Amazon.com this week, with Nvidia reporting February 25.

Sector Performance: Hardware Outpacing Software

Hardware stocks are outperforming software counterparts. Among chipmakers, Micron leads with a 45% January gain and 239% 2025 return, driven by improved device pricing. Advanced Micro Devices rose 10% in January on expectations it can challenge Nvidia in the AI inferencing market—a shift from training AI models to running applications.

Nvidia, the AI bellwether, gained just 2% in January as investors await its next-generation "Vera Rubin" AI accelerators. The stock may remain range-bound until production ramps up.

Meta Platforms emerged as a weekly winner, with AI investments showing returns. The company gained 9% in January. Arista Networks rose 8% ahead of its February 10 earnings report.

Software Sector Under Pressure

Software stocks face significant headwinds from concerns that OpenAI and Anthropic will emerge as competitors. The iShares Expanded Tech-Software Sector ETF dropped 13% in 2026.

Former 2025 winners retreated: Palantir fell 18%, Snowflake declined 12%, Oracle dropped 15%, and Salesforce lost 12%. Investor anxiety centers on "per seat" licensing models and potential job elimination from AI productivity gains.

Bubble Concerns

Rising worries include massive debt for data center buildouts, infrastructure depreciation, electricity grid capacity, and loan securitization practices. Morgan Stanley noted OpenAI spending concerns are dampening sentiment for related equities.