Investors seek shelter from AI rout in asset-heavy stocks
Financial Times
February 24, 2026
AI-Generated Deep Dive Summary
Investors are increasingly turning to asset-heavy sectors such as energy and utilities to shield themselves from the recent sell-off in AI-related stocks. Concerns about artificial intelligence disrupting the software industry have triggered a shift in investment strategies, with investors seeking stability in sectors less exposed to tech volatility. This trend highlights a broader reevaluation of risk and return in the current economic climate.
The energy sector has emerged as a key beneficiary of this flight to safety, with companies involved in oil, gas, and renewable resources seeing increased demand for their shares. Similarly, utilities stocks, which offer steady returns through infrastructure investments, are attracting significant capital inflows. These sectors are perceived as more resilient during periods of uncertainty, offering investors a sense of security amid the AI-driven market turbulence.
The shift underscores the growing importance of diversification in investment portfolios. As fears about AI's impact on tech-heavy industries mount, traditional sectors with tangible assets and predictable cash flows are becoming hotspots for risk-averse investors. This trend is also driven by expectations of higher energy demand and infrastructure development as economies worldwide navigate geopolitical tensions and climate change challenges.
For businesses and readers interested in financial trends, this shift signals a potential reordering of market priorities. Companies operating in asset-heavy industries may see increased valuations as investors seek shelter from the AI rout. Meanwhile, tech firms will need to reassess their strategies to address concerns about AI's long-term viability and its impact on software-dependent sectors.
This movement reflects broader economic dynamics, with investors balancing innovation and stability in an uncertain global landscape. As markets continue to evolve, the interplay between emerging technologies and traditional industries will remain a critical focus for businesses, investors, and policymakers alike.
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Originally published on Financial Times on 2/24/2026