Inside the S&P 500 AI boom, industrials are getting as rich as tech stocks

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As the AI infrastructure buildout and global geopolitical developments spur massive spending, an old-guard sector of the economy is getting a level of attention from investors that rivals the action in tech. The industrials sector of the S&P 500 is trading at a price-to-earnings ratio above 30, a level investors more often associate with high fliers, and a P/E ratio that is well above industrials' long-term average, which is closer to 20. "If you look at [Industrial Select Sector SPDR] XLI from State Street, its valuations are really high relative to the S&P 500," Cinthia Murphy, director of research at VettaFi, said on the most recent "ETF Edge." "It's as high as tech, so it really is a sector that has really had its moment in the sun and picked up a lot of attention," Murphy said. The race to construct AI data centers in hopes of gaining a durable business advantage in a rapidly-shifting digital infrastructure has gripped the corporate w...

These high-flying tech stocks are down 65% — here's how to shop the sell-off: One Big Investment Idea

These high-flying tech stocks are down 65% here's how to shop the sell-off: One Big Investment Idea Jared Blikre Updated Fri, July 24, 2026 at 3:00 PM PDT 3 min read OKLO CRWV ASTS IONQ RKLB A new generation of futuristic, high-flying tech stocks has been cut down roughly 60% from its highs. That is enough damage to start looking for opportunity but not enough to make every stock a bargain. "THE FUTURE IS ON SALE RIGHT NOW," investor Shay Boloor wrote in a recent X post highlighting steep losses across companies tied to nuclear power, quantum computing, space, robotics, and artificial intelligence. The group spans several of the market's hottest long-term themes. Oklo ( OKLO ) is tied to advanced nuclear power, IonQ ( IONQ ) to quantum computing, Rocket Lab ( RKLB ) and AST SpaceMobile ( ASTS ) to space, and CoreWeave ( CRWV ) and SoundHound AI ( SOUN ) to the AI build-out. Among 21 selected stocks, the median is down roughly 65% from its record high. High-flying tech stocks have fallen hard. Yahoo Finance The hard part begins after the markdown. A stock that is down 65% is not automatically 65% "off." Anchoring can turn the old high into a false reference point, making today's price look cheap even when that earlier valuation was built on expectations that no longer hold. The recovery hurdle also grows much faster than the original loss, as this table shows. Loss from high Rally required to recover 20% 25% 40% 67% 50% 100% 60% 150% 70% 233% 80% 400% 90% 900% A stock sitting 65% below its high must climb 154% merely to get back there. The last generation of pandemic darlings shows how ugly that arithmetic can get. Peloton ( PTON ), Zoom ( ZM ), Roku ( ROKU ), DocuSign ( DOCU ), and Teladoc ( TDOC ) all suffered enormous declines from their pandemic-era highs. Across a 20-stock sample, the median stock eventually fell roughly 90%. After first falling 50%, the median stock lost another 80% from that lower price. As an old Wall Street line puts it, a stock down 99% can still fall another 100% from there. The comparison does not put a 90% target on today's group. It shows how little the old high says about where the floor sits. The selected modern group is down a median 60% from its highs. Pandemic darlings eventually fell a median 90%. Yahoo Finance analysis of AlphaSpace data So what can turn a wrecked stock into a potential buy? Look for revenue, backlog , customer adoption, margins , or free cash flow moving in the right direction. Then compare the valuation with the company's own history and relevant peers. A price-to-sales ratio can help with companies that lack profits, though it says little about margins, debt, or financial strength. More from Yahoo Scout What makes recovery difficult for heavily declined stocks? What signals indicate a stock buying opportunity? How do pandemic darlings compare to today's...

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