AI ‘Fatigue’ Leaves Investors Focused on S&P’s Other 493 Stocks

Bets on artificial intelligence companies have dominated US equity markets for three years, powering a 78% gain. A growing number of investors are now wagering that run, led by the Magnificent Seven, is about to end.

Mounting concerns about AI’s ability to deliver seismic changes on the American economy — and the fat profits that would come with them — has turned investor euphoria about the technology into agita. That’s driving cash into shares of the “other” 493 companies, particularly ones that would benefit most if an expected uptick in economic growth comes about.

“I call it ‘AI fatigue,’” said ...