This year, equity markets have increasingly bifurcated between companies that are building the infrastructure powering artificial intelligence or integrating it seamlessly into their core operations, and those still struggling to translate technological promise into tangible revenue and profit.

The divergence among leading technology names reflects familiar themes such as execution risk, scale, capital intensity and competitive moats, all of which are shaping investor sentiment.

Broadcom has emerged as a quiet but powerful beneficiary of the AI boom.

In its most recent quarter, AI-related revenue rose roughly 60 per cent year over year, prompting analysts to steadily raise their long-term estimates.

Broadcom’s strength lies in its custom application-specific chips and high-speed connectivity solutions demanded by hyperscale data centres.

These products sit at the centre of the global AI infrastructure buildout, allowing Broadcom to expand well beyond its traditional semiconductor markets and establish itself as a key supplier to the world’s largest cloud providers.

Alphabet, the parent company of Google and one of our core holdings at LOM Asset Management Ltd, remains among the original architects of modern AI.

From pioneering the transformer model to introducing its Gemini large language models, Google’s research and engineering leadership have helped define the field.

The company is now applying these capabilities across its foundational businesses in search, advertising, YouTube and cloud computing, improving both user experience and monetisation.

The breadth of these applications provides Google with a level of competitive resilience that few peers can match.

Nvidia stands as the most visible hardware winner. Its dominance in graphics processing units has made it the default supplier for training and deploying large-scale AI models, supported by a robust software ecosystem that simplifies adoption.

While competitors are working to narrow the gap, Nvidia’s combination of scale, developer loyalty and continuous product innovation keeps it firmly at the centre of the AI spending cycle.

The story is less straightforward for several high-profile software firms. Salesforce, once a market darling, has aggressively promoted its “Agentforce” AI initiative, yet slower-than-expected monetisation and cautious guidance have left investors unconvinced.

Accenture continues to face cyclical demand pressures and margin compression, and although it is investing heavily in AI capabilities, financial returns have yet to match the narrative.

Adobe provides another example. Despite unveiling impressive generative-image tools and raising guidance, its shares have declined sharply this year as investors question whether these innovations can deliver sustainable, high-margin growth or whether lower-cost competitors will erode its market share.

These mixed outcomes highlight that investor enthusiasm for AI alone does not guarantee stock market success.

Companies that can operate at scale, manage the capital demands of AI infrastructure and embed machine learning deeply into their core offerings, such as Broadcom, Microsoft, Google, Nvidia and Oracle, are being rewarded.

Others, including Salesforce, Accenture and Adobe, illustrate how difficult it can be to convert promising AI technology into consistent financial performance.

As the AI economy matures, disciplined execution and durable competitive advantages are likely to matter far more than simply attaching the AI label to a strategy.

• Bryan Dooley, CFA, is the chief investment officer at LOM Asset Management Ltd in Bermuda. Please contact LOM at +1 441-292-5000 or visit www.lom.com for further information. This communication is for information purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument, investment product or service. Readers should consult with their brokers if such information and or opinions would be in their best interest when making investment decisions. LOM is licensed to conduct investment business by the Bermuda Monetary Authority