Global investors have begun to review their portfolios more actively and reallocate capital from technology companies in favor of sectors more protected from economic shocks. The reason is growing doubts about whether large-scale investments in the development of artificial intelligence will be able to bring the expected profits.
This is reported by the Financial Times.
The shift in sentiment is already reflected in the stock market. Since the beginning of October 2026, the global MSCI index of technology companies has lost more than 13%. At the same time, investors are more actively putting funds into companies that produce consumer staples, operate in healthcare, and provide utilities.
The growth of interest in consumer goods manufacturers became especially noticeable. Based on October results, the corresponding stock index rose by 10.6%. This is the sector's largest monthly gain since 1998.
Thus, against the backdrop of uncertainty regarding the future profitability of AI investments, capital is gradually shifting to sectors whose demand for products and services remains relatively stable even during economic turmoil.
Walmart, Coca-Cola, and Procter & Gamble shares are rising
The redistribution of investment flows has already affected the quotations of large American companies operating in the consumer sector.
After the Nasdaq 100 index reached its peak value on October 6, Walmart shares rose by more than 15%.
Over the same period, Procter & Gamble and Coca-Cola securities rose by more than 10%.
The increased interest in these companies is explained by investors' desire to reduce their portfolios' dependence on the technology sector, where business valuations are largely tied to expectations of future growth.
Instead, manufacturers of everyday consumer goods traditionally belong to defensive sectors, since demand for their products remains relatively stable even when the economic situation deteriorates.
Citi lowered its recommendations on tech stocks
Analysts at the American bank Citi characterized the change in investment positions as sharp and large-scale.
Against the backdrop of worsening sentiment, the bank revised its recommendations on U.S. and global technology stocks, downgrading them from "outperform" to neutral.
Among the main reasons for this decision, analysts cite weakening optimism around artificial intelligence and a slowdown in positive revisions to corporate earnings forecasts.
Investors are increasingly concerned about the relationship between the huge capital expenditures on data centers, computing power, and other AI infrastructure and the potential revenues from the use of these technologies.
An additional factor of uncertainty was the results of the US midterm elections, after which market participants began more actively discussing the possibility of increased regulatory pressure on technology companies.
In particular, the concern is related to the prospects for regulating infrastructure projects in the field of artificial intelligence.
Further dynamics of tech stocks will depend on the extent to which companies' financial results confirm investors' expectations regarding the commercial returns from large-scale AI investments.