Tech giants and mega-cap software stocks are collapsing amid a violent sell-off. Although high-growth technologies have been hit, several sectors have shown relative strength or even gains. Below, we highlight key stocks that are quietly staging a rotation-fueled rally.
The technology sector suffered a sharp sell-off, with software stocks and AI-related companies leading the decline. Major indices like the suffered their worst three-day rout since the April 2025 “Liberation Day” sell-off, losing hundreds of billions of dollars in market value.
Source: Investing.com
The software and services index alone has lost nearly $1 trillion since late January, with names like Salesforce (NYSE:), Palantir (NASDAQ:), Adobe (NASDAQ:), ServiceNow (NYSE:) and Microsoft (NASDAQ:) falling sharply.
Even the biggest tech giants aren’t immune: Netflix (NASDAQ:) is down 34%, Meta Platforms (NASDAQ:) is down 22%, and Tesla (NASDAQ:) is down 12% from recent highs.
Concerns about massive capital spending on AI, such as Amazon (NASDAQ:) projected to spend $200 billion, coupled with weak economic data such as rising and slowing job openings, have exacerbated the slowdown.
This risk-averse sentiment spread to cryptocurrencies and commodities, with a drop below $65,000 and silver plunging as much as 17% in one session.
Source: Investing.com
Yet amid the chaos, not all market sectors are collapsing. Investors are moving toward more defensive and value-oriented sectors, seeking stability in sectors less exposed to AI hype and high valuations. Here’s a look at the pockets that are holding up and the opportunities to consider for those looking to weather the storm.
Pockets of Resilience: Sectors and Stocks Worth Buying
For investors looking for a safe haven, focus on areas that are undervalued, rich in dividends and have strong fundamentals. Diversification in these sectors can mitigate technological volatility.
1. Healthcare
A top pick for stability, with 59% buy ratings among analysts. Demand for innovative treatments remains robust.
Eli Lilly (NYSE:: Rising thanks to the momentum of anti-obesity drugs, with an implied increase of 27% for analysts.
It’s diverse…
..
