Business US
As semiconductor stocks slump, one AI-adjacent sector is thriving — and these are the stocks to buy there
Updated July 17, 2026, 9:31 a.m. ET
Early action on Wall Street shows stocks ending the week under severe pressure. And once again it appears to be concerns about valuations attached to the build-out of artificial intelligence that are doing the damage, with the semiconductor sector leading the retreat.
Rotating away from erstwhile AI darlings has been in vogue of late. Defensive plays like consumer staples XLP and healthcare XLV are becoming popular again. Bank stocks XLF have benefited from a batch of good earnings.
