Goldman Names 23 Defensive Stocks for Investors Worried About the AI Trade

Goldman Sachs named 23 health care and consumer staples stocks with low volatility and high free cash flow yields for investors worried about the artificial intelligence trade. Analysts led by Ben Snider said months of interest-rate pressure raised cost-of-capital concerns and led the market to lower growth expectations. The call followed RBC Capital Markets’ October 14 cut of technology to market weight and its recommendation of health care instead. Goldman estimates AI capital spending drives about half of S&P 500 earnings growth and expects that contribution to shrink as spending growth slows, with earnings growth cooling from around 29% in 2026 to 18% in 2027.