Goldman Sachs analysts, led by Ben Snider, noted that while many fund managers remain optimistic about AI infrastructure, recent market fluctuations have made it difficult to sustain that outlook.
The S&P 500 fell nearly 1.6% last week, with the Nasdaq Composite dropping 2.9%, and AI-related stocks suffering even more, as evidenced by the Global X Artificial Intelligence & Technology ETF's 7.5% decline.
To identify investment opportunities not linked to AI, Goldman highlighted sectors such as 'Consumer Experience' and 'Compounders.' Notable stocks include Formula One Group Series, which Morgan Stanley rates as a top pick with a $120 price target, suggesting a 21% upside.
Live Nation also made the list, with UBS raising its price target to $208, indicating a 15% upside, driven by strong demand for live events. Additionally, MSCI was identified as a compounder, with Jefferies initiating coverage with a buy rating and a price target of $760, reflecting nearly 22% upside potential.
Marriott International was categorized in both groups, with Morgan Stanley increasing its price target to $380, suggesting about 4% upside, citing the company's strategic business transformations that reduce cyclicality