Calls from artificial intelligence leaders to slow the development of advanced models could trigger a near-term rotation in technology stocks, according to Melius Research analyst Ben Reitzes.

AI ‘Losers’ Could Get a Lift

Reitzes told CNBC on Monday that companies viewed as vulnerable to AI disruption could benefit from the debate. Stocks that could gain from lower AI capital spending may also attract investors.

“What is going to happen today is that the AI losers will actually go up,” Reitzes said.

That rotation was already visible Monday. CrowdStrike Holdings Inc. (NASDAQ:CRWD), SailPoint Inc. (NASDAQ:SAIL) and Palo Alto Networks Inc. (NASDAQ:PANW) each surged roughly 13% to 15%. Meanwhile, ServiceNow Inc. (NYSE:NOW) and HubSpot Inc. (NYSE:HUBS) gained about 7% to 11%.

However, he argued that the broader AI investment cycle remains intact. He pointed to recursive self-improvement, or RSI, as a major driver of future computing demand.

“That train has left the station,” Reitzes told CNBC.

He also expects cybersecurity demand to surge as more powerful AI models create new security risks. That could require more computing power and AI models designed to defend against other models.

OpenAI, Anthropic Hold Early Lead

Reitzes said OpenAI and Anthropic have established a significant lead in advanced AI. He compared the industry to a 100-yard race, with the two companies already at the 70-yard line.

That position could allow the AI leaders to help shape industry guardrails while protecting their competitive advantages, he said.

Reitzes expects industry leaders to eventually coordinate on safeguards and communicate a clearer path forward to investors. He suggested NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang could play a role in bringing key players together.

For investors, the immediate concern is uncertainty around AI spending. However, Reitzes’ comments suggest calls for tighter safeguards do not necessarily signal an end to the AI infrastructure boom.

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