Old-Economy Stocks Are Looking Pretty Good Right About Now
A basket of capital-intensive stocks is rallying as investors flee AI disruption.
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The renewed plunge in the shares of perceived victims of the AI revolution has investors wondering where to turn for shelter. One answer, according to Goldman Sachs, is capital-intensive companies such as utilities, miners, some industrial firms and even luxury-goods makers.
The thinking is that AI can’t pull minerals out of the ground or stitch together handbags, so those companies should be insulated from the disruption that’s upending software and services. Goldman is pushing a new basket of capital-heavy companies, noting that it has outperformed a basket of capital-light businesses by 35% since the start of 2025.