VC10X Micro - The Great AI Rotation: From SaaS to Semiconductors and Power

Over the past several weeks, nearly $1 to $2 trillion in market value has been erased from software and SaaS equities.

At the same time, semiconductor foundries and data center infrastructure companies are demonstrating relative resilience, and in some cases outperforming.

This episode examines whether we are witnessing a temporary correction or a structural repricing of the AI technology stack.

We break down:

• The 20 to 25 percent correction in the S&P 500 Software & Services Index

• Why AI-native tooling, including developments from Anthropic and other model providers, is pressuring traditional SaaS assumptions

• The resilience of advanced-node manufacturers like TSMC

• IonQ’s acquisition of SkyWater Technology and what it signals about vertical integration and domestic manufacturing
• The accelerating build-out of power and cooling infrastructure, with companies like Vertiv benefiting from AI-driven density requirements

• Where durable value may accrue across the AI stack

For allocators, venture investors, and operators, this is less about short-term volatility and more about capital rotation.

The key question is no longer whether AI is real.

It is where long-term value concentrates:

Application layer

Compute layer

Physical infrastructure enabling it

If you allocate capital across technology, public or private, this is a critical moment.

Subscribe to VC10X for in-depth conversations with leading fund managers, founders, and LPs navigating the next phase of the AI cycle.

LINKS

Prashant Choubey - https://www.linkedin.com/in/choubeysahab

Subscribe to VC10X newsletter - https://vc10x.beehiiv.com

Subscribe on YouTube - https://youtube.com/@VC10X

Subscribe on Apple Podcasts - https://podcasts.apple.com/us/podcast/vc10x-investing-venture-capital-asset-management-private/id1632806986

Subscribe on Spotify - https://open.spotify.com/show/7F7KEhXNhTx1bKTBFgzv3k?si=WgQ4ozMiQJ-6nowj6wBgqQ

VC10X website - https://vc10x.com

For sponsorship queries reach out to prashantchoubey3@gmail.com

SUBSCRIBE FOR MORE

VC10X breaks down the most important stories in finance, tech, and markets every week. Subscribe for actionable insights

Let us know in the comments:

Is software experiencing temporary multiple compression or structural repricing?

#AI #VentureCapital #SaaS #Semiconductors #DataCenters #TechInvesting #CapitalMarkets