If the AI bubble bursts, what stocks do you think could still hold up? Could I get three ideas, please?
Friday’s market was rough — even the non-AI names took a hit.
Thanks!
With the AI trade working its way into so much of the economy, there won't be a whole lot that is free from it. Even more defensive sectors like utilities would see an impact due to the demand they are seeing related to AI. Software has been a laggard due to fears over AI, so if the bubble were to burst, tehre could be a case to be made that software does better. Staples would probably be fine and consumer discretionary as well, but there could be a n argument that if wealth decreases due to markets going down that discretionary stocks feel that as well. We don't know that there are 'specific' names that benefit from the AI trend fizzling out but software and staples (and fixed income) are likely the areas to consider if this is a concern.