When the sixth most valuable U.S. company posts 221% sales growth and neither the stock, nor the broader market, gets excited then something’s not quite right.

Broadcom even sees artificial intelligence chip revenue doubling to $230 billion next year. But the earnings it posted last night are getting one big shrug.

It’s a completely different story in the software sector. The market has been so terrible at pricing in the disruption of AI that the bar for earnings is practically on the floor. Snowflake’s 35% revenue growth was enough to trigger a 20% gain ahead of the open.

The divergence encapsulates the AI trade right now. The chip rally, including memory plays like Micron, has paused, and the software comeback is on.

The broader market has a bigger problem—rising bond yields. The 10-year Treasury yield is creeping higher again, and unless that changes, Wednesday’s stock market gains look like a one-off this week.

You can subscribe to the Barron’s Daily newsletter here.