According to a CNBC analysis of FactSet data, stocks outside the artificial intelligence sector have shown remarkable performance, outperforming the S&P 500 by one of the widest margins in nearly three years. Notable gainers include Fair Isaac, which rose almost 14%, Equifax at 10.4%, Darden Restaurants up 10.3%, and Brown-Forman increasing by 9%.
On Wednesday, the S&P ex-AI index gained 0.61%, outperforming the S&P 500 by 1.72 percentage points, marking the fifth largest daily gap in favor of the ex-AI benchmark this year.
For the week through Thursday, the S&P ex-AI index increased by 2.4%, while the S&P 500 declined nearly 1%, resulting in a 3.29 percentage-point lead for the ex-AI index, which is on track for its second-largest weekly outperformance since early 2024. The only wider gap occurred in late June, when the ex-AI index rose 2.3% as the S&P 500 fell roughly 2%.
Although the ex-AI benchmark still lags behind the S&P 500 in the long term, this week's performance reflects a growing interest in stocks beyond the AI hype. The introduction of the S&P ex-AI index, launched by Goldman Sachs and S&P Dow Jones Indices in February, allows investors to measure or hedge against the AI trade by excluding companies heavily reliant on AI-related revenue.
Trivector Research has identified potential in 'non-tech compounders'—companies that can achieve rapid growth without depending on AI infrastructure, including firms like Eli Lilly, Tapestry, and AbbVie. Adam Parker, founder of Trivector, noted that these non-tech compounders could be valuable in portfolios, especially if AI leadership expands or market volatility increases