Investors are betting on companies dealing with physical infrastructure and tangible goods, which are safer from AI disruption|Jean-Christophe BENOIST|CC BY 3.0
The frenzy around artificial intelligence is driving Wall Street towards businesses deemed less vulnerable to AI progress. Experts are calling it a HALO (heavy assets, low obsolescence) trend.
Strategists at Goldman Sachs say their basket of stocks, comprising companies that rely on physical assets, has outperformed counterparts that are reliant on digital or human resources by 35% since the start of 2025.
The shift highlights growing investor interest in sectors such as utilities, energy, and basic resources.
The Wall Street Journal recently noted that investors are betting on companies like McDonald’s, Exxon Mobil, and tractor maker Deere. These physical infrastructure and tangible goods are safer from AI disruption than digital services.
The move marks a significant reversal in the market. Previously dominant tech giants are being reclassified as capital-intensive plays as they commit an estimated $1.5 trillion toward AI infrastructure through 2026.
Meanwhile, anxiety over AI rendering technological obsolescence has sparked selloffs in software and financial data firms, such as Datadog, CrowdStrike, and Zscaler.
Overall, investors are now demanding clearer proof of sustainable returns rather than speculative growth. They are increasingly viewing heavy industry as a safer harbor in an AI-driven economy.
The upcoming Nvidia and Salesforce quarterly earnings this week could provide a clearer picture of AI gains.