AI Demand Diverges Nasdaq-100 Software and Hardware Stocks

Artificial intelligence created a sharp performance divide among major technology stocks during the first half of 2026. Hardware and memory providers dominated the S&P 500, while software companies faced significant losses on the Nasdaq-100 as investors feared AI disruption.

Sandisk emerged as the top performer, with its stock surging 858% by the end of June due to high product demand. Micron Technology saw its valuation exceed $1.1 trillion, with stock gains over 300% driven by data center needs for DRAM and high-bandwidth memory. Intel's stock rose approximately 280%, supported by investments from Nvidia and the U.S. government, alongside 16% revenue growth in its foundry business, despite a $4.3 billion first-quarter net loss from restructuring.

Conversely, Intuit, Adobe, and Workday were the three worst-performing stocks on the Nasdaq-100, each declining by more than 35%. Intuit suffered the steepest drop, falling nearly 60%. Adobe and Workday both declined approximately 37%. These losses occurred despite reported quarterly revenue growth: 13% for Adobe, nearly 14% for Workday, and 10% for Intuit. The disparity highlights a market shift where investors are favoring the physical infrastructure of AI over established software and cloud platforms.