A recent analysis highlights a significant rally in semiconductor and artificial intelligence infrastructure stocks, which have reached historically high levels compared to their long-term trends. This surge has occurred alongside a notable decline in interest for defensive and slower-growth sectors.
CNBC Pro conducted a screening of the S&P 500 to identify stocks trading farthest above or below their 200-day moving averages relative to their historical patterns. The results show that semiconductor and hardware companies, including Intel, Micron, Seagate, Western Digital, On Semiconductor, Texas Instruments, and AMD, are among those trading significantly above their averages.
This trend underscores the dominance of the AI and data center sectors in the current market rally, extending beyond just the largest tech firms. Additionally, companies like Caterpillar, Centene, and Cboe Global Markets have also seen substantial gains, each rising over 40% in 2026 and trading well above their moving averages.
Conversely, many defensive consumer and healthcare stocks are currently undervalued, with firms like Zoetis and Abbott Laboratories trading significantly below their historical trends. This reflects a market preference for high-growth tech stocks, leaving traditional consumer staples such as General Mills, McCormick, and Campbell's under pressure as consumer spending habits evolve.
IT services and enterprise software companies, including Accenture, EPAM Systems, Workday, and ServiceNow, are also heavily represented on the oversold list, indicating investor caution regarding potential slowdowns in corporate spending and the impact of generative AI.
Notably, ServiceNow's stock has halved in value over the past year and is trading well below its 200-day moving average, signaling ongoing concerns in the software sector