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

Inside the S&P 500 AI boom, industrials are getting as rich as tech stocks, with investors increasingly valuing traditional parts of the index like high-growth technology. The industrials sector of the S&P 500 is trading at a price-to-earnings ratio above 30, compared with its long-term average near 20, according to the article. Cinthia Murphy of VettaFi said the Industrial Select Sector SPDR (XLI) is priced high relative to the broader S&P 500, putting it “as high as tech.” The rally is tied to AI infrastructure buildouts and geopolitical-driven spending. Alphabet forecast 2026 capex of $195 billion to $205 billion, up from prior guidance of $180 billion to $190 billion. McKinsey estimates global data-center spending could reach nearly $8 trillion by 2030, with rural projects expected to expand amid major power-grid upgrades needs.