Goldman Ex-AI Index Edges Ahead of the S&P 500 — SkimNews
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- Goldman Sachs — Its proprietary S&P 500 index excluding AI enablers rose 12.4% through Oct. 22, edging the standard S&P 500's 12% gain and sitting neck-and-neck after tech rallied Monday.
- S&P 500 — Tech and AI-related companies make up about 45% of the index; its tech sector is down about 7% this month while other sectors have held up, turning that heavy weighting into a liability.
- Meta Platforms — Shares sank almost 7% Thursday after the company outlined heavier capital spending and plans to issue additional shares, and investors also soured on debt and equity from CoreWeave and Oracle; AI buildout suppliers GE Vernova, Bloom Energy, Vistra and Quanta Services suffered steep declines in the recent selloff.
- Consumer Staples Select Sector SPDR ETF — Consumer staples, health care and utilities ETFs are each up 7% to 10% this month, and energy is ahead 10%, though that gain is more related to the war in Iran.
- Oppenheimer — The firm upgraded commercial services and insurance to overweight, favoring Republic Services, Cintas, Verisk Analytics, Broadridge Financial Solutions, MetLife and Arthur J. Gallagher; technical analyst Ari Wald wrote in an Oct. 24 note that the "AI pendulum has swung back in favor of non-AI exposure over the last two weeks."
- Berkshire Hathaway — Class B shares are up 8% this month, though the stock still lags the S&P 500 for the year; its $364 billion portfolio spans Apple, Coca-Cola, Alphabet and Bank of America.
- Eli Lilly — Trivector Research sees potential in "non-tech compounders": Lilly is up 22% on weight-loss drugs and plans to file a next-generation obesity drug for FDA approval early in 2027, while Viking Holdings has 40% of river capacity and 60% of ocean capacity booked for 2027 and trades near $82 against an average Wall Street target of $109.
Why it matters: For the roughly 45% of the S&P 500 sitting in tech and AI enablers, a 7% monthly tech decline turns index concentration into the main drag, while Berkshire Hathaway's Class B rose 8% this month and Eli Lilly 22% as gains shift toward diversified and non-tech compounders.
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