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The tech sector faced a large sell-off in the past few trading days with many stocks in the chip sector, like Nvidia (NVDA), seeing volatility.

Moor Insights & Strategy Founder, CEO & Chief Analyst Patrick Moorhead joins Morning Brief to give insight into the future of AI plays and what investors need to keep in mind.

Moorhead believes he sees: "Three major buckets for AI plays." "The first one is this infrastructure. Anybody who is related to building out these massive, data centers with GPUs in them... I'm very confident next 12 to 18 months, that's going to be the case. And we saw the capital expenditure commitments by Microsoft (MSFT) and Meta (META) and Amazon (AMZN). It is absolutely pedal to the metal on that."

He continues with: "The enterprise software providers, that there has to be benefit in a large scale for all this to interconnect because there is just factually an over-investment in the capability versus the downstream benefits at this point."

Finally, he says there is an "untapped opportunity" with AI PCs and AI smartphones.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Nicholas Jacobino