The Informed Momentum Company CIO, Travis Prentice, says markets are undergoing major structural shifts driven by AI expansion and deglobalization, reshaping sector leadership and stock performance.

AI Build-Out And Deglobalization Drive Market Shift

Travis Prentice told CNBC on Thursday that he has identified two "seismic shifts" powering the market: the accelerating AI build-out and a move from globalization toward near-shoring.

He said the AI trend is entering a "disruption phase," with software at the "ground zero" of impact, while these combined forces are reshaping which industries outperform.

Hardware, Semis, and Industrial Sectors Lead

Prentice said that the momentum is shifting from software to hardware-focused areas, where AI infrastructure is being built.

He pointed to strength in memory and semiconductor-related stocks, including Micron Technology Inc. (NASDAQ:MU), Sandisk Corp. (NASDAQ:SNDK), and Western Digital Corp. (NASDAQ:WDC), as well as semiconductor capital equipment firms.

He added that utilities, materials, energy, and industrials are also benefiting as the AI data center build-out expands, driving broader market participation and widening gaps between winners and losers.

Broader Participation Reflected In Index Performance

He highlighted growing dispersion across indexes and styles, noting a roughly 700-basis-point performance gap between the Russell 2000 and the S&P 500, as well as an 800-basis-point gap between large-cap value and growth.

Prentice said that this reflects rising momentum in AI-adjacent sectors such as energy, utilities, engineering, and construction, as both AI infrastructure and near-shoring trends drive demand across a wider set of industries.

Price Action: SanDisk shares were up 0.54% at $926.00, Western Digital shares were up 0.59% at $374.72 and Micron Technology shares were up 0.03% at $455.21 during premarket trading on Monday, according to Benzinga Pro data.

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