---
title: "Investors Rotated Out of AI And Bought These Stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/302081212.md"
description: "Investors rotated out of AI and tech stocks, including Intel, Nvidia, and Dell, due to fears of intensified selling pressure. Instead, capital flowed into discounted sectors such as utilities (XLU), real estate (XLRE), home improvement (Home Depot, Lowe’s), pharmaceuticals (Eli Lilly), and retail (Costco, Walmart). This shift occurred despite high inflation data, with value-oriented stocks rallying as investors sought safer or undervalued alternatives amid tech sector volatility."
datetime: "2026-10-16T08:45:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/302081212.md)
  - [en](https://longbridge.com/en/news/302081212.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/302081212.md)
generator: "portal-rs"
---

# Investors Rotated Out of AI And Bought These Stocks

Fearful that the selling pressure would intensify for AI hardware suppliers, investors snapped up stocks in the discounted sectors. Exchange-traded fund investors who bottomed a few weeks ago signaled a chance to buy them at a discount.

The Utilities Select Sector (XLU) bottomed at $39.03 late last month. When the 30-Year Treasury bond (TLT) and 10-Year (IEF) yields dipped, XLU stock traded toward $42. The Real Estate Investment Trust (XLRE) looked like it bottomed. But at a yield of 3.48% for the XLRE ETF, a 2-year Treasury bond offers risk-free returns.

On Thursday, selling in the tech sector started strong in the morning but moderated by the end of the day. Intel (INTC) and Nvidia (NVDA) both trimmed losses to end down by less than 2%. Micron Technology (MU) traded below $900 intraday. It closed at $931.24.

Investors rotated out of tech names like Applied Materials (AMAT), Cisco Systems (CSCO), and especially Dell Technologies (DELL). Dell stock fell by 6.8%.

The home improvement sector rose. Home Depot (HD) and Lowe’s (LOW) gained. Drug firms, viewed as discounted value holdings, also jumped. Eli Lilly (LLY) led the advance, while Bristol Myers (BMY) and Gilead Sciences (GILD) followed.

Retail firms also rallied. Despite high inflation and producer price index figures, Costco (COST) and Walmart (WMT) broke out of their lows. WMT stock traded back at levels not seen since August.

### Related Stocks

- [BMY.US](https://longbridge.com/en/quote/BMY.US.md)
- [COST.US](https://longbridge.com/en/quote/COST.US.md)
- [DELL.US](https://longbridge.com/en/quote/DELL.US.md)
- [GILD.US](https://longbridge.com/en/quote/GILD.US.md)
- [HD.US](https://longbridge.com/en/quote/HD.US.md)
- [INTC.US](https://longbridge.com/en/quote/INTC.US.md)
- [LLY.US](https://longbridge.com/en/quote/LLY.US.md)
- [LOW.US](https://longbridge.com/en/quote/LOW.US.md)
- [WMT.US](https://longbridge.com/en/quote/WMT.US.md)
- [ANV.US](https://longbridge.com/en/quote/ANV.US.md)
- [COSW.US](https://longbridge.com/en/quote/COSW.US.md)
- [COTG.US](https://longbridge.com/en/quote/COTG.US.md)
- [DIPS.US](https://longbridge.com/en/quote/DIPS.US.md)
- [DLLL.US](https://longbridge.com/en/quote/DLLL.US.md)
- [ELIL.US](https://longbridge.com/en/quote/ELIL.US.md)
- [ELIS.US](https://longbridge.com/en/quote/ELIS.US.md)
- [INT.US](https://longbridge.com/en/quote/INT.US.md)
- [INTW.US](https://longbridge.com/en/quote/INTW.US.md)
- [INYY.US](https://longbridge.com/en/quote/INYY.US.md)
- [LINT.US](https://longbridge.com/en/quote/LINT.US.md)
- [LLYX.US](https://longbridge.com/en/quote/LLYX.US.md)
- [LLYZ.US](https://longbridge.com/en/quote/LLYZ.US.md)
- [NVC.US](https://longbridge.com/en/quote/NVC.US.md)
- [NVD.US](https://longbridge.com/en/quote/NVD.US.md)
- [NVDB.US](https://longbridge.com/en/quote/NVDB.US.md)
- [NVDD.US](https://longbridge.com/en/quote/NVDD.US.md)
- [NVDG.US](https://longbridge.com/en/quote/NVDG.US.md)
- [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md)
- [NVDO.US](https://longbridge.com/en/quote/NVDO.US.md)
- [NVDQ.US](https://longbridge.com/en/quote/NVDQ.US.md)
- [NVDS.US](https://longbridge.com/en/quote/NVDS.US.md)
- [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md)
- [NVDW.US](https://longbridge.com/en/quote/NVDW.US.md)
- [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md)
- [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md)
- [NVIB.US](https://longbridge.com/en/quote/NVIB.US.md)
- [NVII.US](https://longbridge.com/en/quote/NVII.US.md)
- [NVIT.US](https://longbridge.com/en/quote/NVIT.US.md)
- [NVW.US](https://longbridge.com/en/quote/NVW.US.md)
- [NVYY.US](https://longbridge.com/en/quote/NVYY.US.md)
- [NYYY.US](https://longbridge.com/en/quote/NYYY.US.md)
- [WMTI.US](https://longbridge.com/en/quote/WMTI.US.md)
- [XLRE.US](https://longbridge.com/en/quote/XLRE.US.md)
- [XLU.US](https://longbridge.com/en/quote/XLU.US.md)
- [07388.HK](https://longbridge.com/en/quote/07388.HK.md)
- [07788.HK](https://longbridge.com/en/quote/07788.HK.md)
- [09388.HK](https://longbridge.com/en/quote/09388.HK.md)
- [AMAT.US](https://longbridge.com/en/quote/AMAT.US.md)
- [CSCO.US](https://longbridge.com/en/quote/CSCO.US.md)
- [MU.US](https://longbridge.com/en/quote/MU.US.md)
- [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md)

## Related News & Research

- [7 of the best sparkling wines to get at Costco, according to a sommelier](https://longbridge.com/en/news/302308660.md)
- [FY2028 EPS Forecast for Costco Wholesale Boosted by Analyst](https://longbridge.com/en/news/302880683.md)
- [Costco Wholesale Corporation $COST Stock Holdings Reduced by Hosking Partners LLP](https://longbridge.com/en/news/302840178.md)
- [COST Stock: Why Truist Remains on the Sidelines on Costco Despite Sales Momentum](https://longbridge.com/en/news/302320758.md)
- [Costco Wholesale Corporation $COST Stock Sold by Teamwork Financial Advisors LLC](https://longbridge.com/en/news/302388709.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**