Business
Picks and Shovels Still Rule the AI Tech Trade
The AI trade has definitely become more fraught. But at least one constant remains: Investors are choosing the companies on the receiving end of big tech’s spending spree.
So far, 2026 has been a rough year in general for tech stocks. By Friday’s close, the Nasdaq composite logged a 1% loss, compared with a 4% gain for the Dow. Even more telling, the S&P 500 Equal Weight Index is up around 5%, compared with a 1% gain for the standard S&P 500. The equal-weight index essentially nullifies the outsize influence of eight tech giants, whose combined market capitalization takes up more than a third of the S&P 500’s total.
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