Goldman Sachs says investors worried that the AI trade may lose momentum should look to defensive stocks in health care and consumer staples, especially high-quality names that have recently lagged the market. Analysts led by Ben Snider note that Goldman's cyclicals-vs-defensives pair has fallen 6% over the past two weeks, and that AI capital spending now contributes about half of S&P 500 earnings growth, a share expected to shrink as spending slows. Among the stocks on Goldman's screen, Tyson Foods has an 11% trailing four-quarter free cash flow yield, the highest on the list, though its shares are down nearly 17% over six months. CVS Health has a 9% free cash flow yield and is up 15% this year but down 15% over the past three months. Goldman's base case still calls for continued earnings growth, and it sees possible catch-up gains in beaten-down consumer stocks in 2027, supported by lower energy prices and falling interest rates.
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Original headline: Goldman says play defense with these stocks if youre worried about the AI bull failing
Read the original on cnbc.com ↗
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Goldman Sachsartificial intelligencedefensive stocksconsumer goodshealthcare
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Related tickers and likely impact
NVDA
▼ Likely negativeNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/16/2026 | 214.14 |
| Change that session | -1.42% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 709.82 |
| Change that session | -2.50% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/16/2026 | 763.31 |
| Change that session | -1.10% |
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