economy
Want to hop off the AI trade? Goldman says buy these stocks that have nothing to do with it
Stocks such as Eli Lilly and Fortinet are less correlated to the artificial intelligence frenzy, according to Goldman Sachs.
TL;DR
- Goldman Sachs identifies companies with strong fundamentals that are not dependent on the AI trade.
- The AI trade has driven the S&P 500 and Nasdaq to record highs, creating a perception of a single market "trade."
- Goldman recommends focusing on equities with earnings growth and revisions from AI or other factors.
- Eli Lilly, Fortinet, and Chewy are highlighted as stocks with low correlation to AI and economic growth pricing, and recent positive earnings revisions.
- Eli Lilly has shown resilience with limited returns attributed to economic outlook and AI.
- Fortinet has experienced significant growth, with a portion attributed to economic outlook and AI.
- Chewy has seen a stock price decline, but analysts see potential upside based on the company's fundamentals and conservative guidance.