These 4 'old economy' stock sectors should be a buy after the market's anti-AI meltdown, analysts say

• The tech sell-off continues, with the market undergoing a broad rotation into other areas.
• Piper Sandler analysts highlight four "old economy" sectors to buy amid the downturn.
• Meanwhile, Goldman Sachs flagged sectors it sees as the least exposed to AI disruption.

Investors looking for refuge from the tech sell-off slamming Wall Street should look to the "old economy."

Analysts at Piper Sandler offered a handful of ideas for weary investors weathering the tech sell-off this week. The latest rout, which started in a small corner of the software space, eventually spread to bigger names like Microsoft after an agentic AI update from Anthropic sparked AI replacement fears. The new bearish AI sentiment has bled into the wider tech sector, with a risk-off shift gripping investors in the last few days.

While some commentators argue the software crash is overblown, including Nvidia CEO Jensen Huang, others frame it as a healthy rotation away from tech.

Piper Sandler analysts are in the "rotation nation" camp, seeing the tech sell-off as a shift to "old economy" plays in cyclical and value shares.

"The bull market is intact; however, it's not being led by the popular Tech and Growth favorites of investors. Instead, new momentum and leadership are emerging in cyclical and value sectors—Energy, Industrials, Materials, Staples, and Banks," they said.

Piper Sandler's 'old economy' sector picks' year-to-date performance:

• Energy: +15%

• Industrials: +7%
• Consumer staples: +11%
• Banks: +7%

Meanwhile, the S&P 500 information technology sector is the worst performer in the index in 2026, down more than 6% year to date. The losses have been particularly pronounced in software this week, with the iShares Expanded Tech-Software Sector ETF falling 17% in the last week.

"After years of focus on identifying stocks with the greatest potential AI exposure, concerns about disruption have pushed investors back toward 'real economy' industries, including those leveraged to recent signs of accelerating economic growth," Goldman Sachs analysts wrote this week.

The analysts examined industry exposure to AI automation compared to labor costs and sales to determine which spaces are most insulated. Some of Piper Sandler's "old economy" sectors, specifically energy, industrials, and consumer staples, were part of the same group Goldman flagged.

Goldman analysts added that the sell-off has only sped up an existing market rotation into cyclical stocks.

"The investor search for insulation from AI disruption risk has accelerated the ongoing cyclical rally," they wrote.

Beyond clear flight from stocks exposed to AI risks, BNY Investment researchers credit the rotation, in part, to a cyclical recovery in the US economy.

"The prevailing narrative in US equity markets is one of market broadening and leadership rotation, consistent with our view of a cyclical recovery in the US economy," the BNY analysts wrote.