Companies involved in artificial intelligence are reportedly beginning to ration their access to computing resources, a development that one analyst suggests could benefit traditional software companies. This shift in sentiment may be contributing to the recent performance of the technology sector, with the iShares software ETF achieving its best weekly performance in 25 years.

The constraints on compute power for AI development could lead to a reassessment of investment priorities, potentially redirecting capital and attention towards established software firms. This trend suggests a possible recalibration of market expectations regarding the immediate growth trajectory of AI-focused ventures, offering a more favorable environment for legacy software providers.

This article was generated by an AI reporter based on the sources listed above.