Semiconductor stocks slump, one AI-adjacent sector is thriving - and these are the stocks to buy there

Semiconductor stocks fell sharply at the end of the week, while the article highlights one AI-adjacent theme gaining momentum: robotics. It says the semiconductor pullback reflects concerns about valuations tied to building artificial intelligence, prompting rotation back toward defensive sectors such as consumer staples (XLP) and healthcare (XLV), while bank stocks (XLF) benefited from solid earnings. According to Bespoke Investment Group, interest in robotics has risen rapidly; Google searches for “robotics” and related component terms increased exponentially over the past year, especially in recent months. The piece links renewed attention to developments including Tesla’s pivot of a factory toward its Optimus robot and 1X’s NEO household product. Bespoke notes Japanese industrial robot orders grew 24.5% year over year. It splits its robotics thesis into direct robotics/automation firms and “picks-and-shovels” component makers, requiring market caps above $1 billion and liquid U.S. listings, and lists top holdings by market cap including Alphabet (GOOGL), Amazon (AMZN), Tesla (TSLA), ABB, Deere, and more.