Agentic AI shifts the AI trade from infrastructure toward software winners beyond Nvidia

Agentic AI is moving from an infrastructure-led buildout to application-layer commercialization, as enterprises begin paying at scale for AI-enabled software. Microsoft’s Copilot products reached a $37 billion annual revenue run rate in Q1 2026, up 123% year over year, pointing to a shift from pilots to paid deployments. While NVIDIA continues to dominate AI compute infrastructure, the next phase of outsized gains is increasingly tied to software companies with distribution, vertical specialization, and proven ARR growth.