A tale of two tech sectors: When to invest in AI amid disruption

Julie Hyman and Yahoo Finance Video

Thu, February 26, 2026 at 9:30 PM GMT+9

The proliferation of AI has landed the tech sector in a bizarre position of simultaneous growth and hesitation. Morning Brief Host Julie Hyman speaks with Principal Asset Management chief global strategist Seema Shah about finding investment opportunities in a landscape of AI tension, and knowing when to look elsewhere.

To watch more expert insights and analysis on the latest market action, check out more Morning Brief.

Video Transcript

00:00 Speaker A

Investors are grappling with two very different narratives around artificial intelligence. On the one hand, you’ve seen the AI trade at the heart of the bull market of the last several years, but now AI disruption fears have investors questioning their investment thesis.

00:15 Speaker B

If you think just about to about a year ago where anything which was related to technology was generally going to do pretty well. Um and now you’re entering a slightly more mature phase of the whole tech narrative AI where there is a lot of dispersion under the surface. and now what investors are trying to think about is who is going to benefit from the development of AI and who is essentially going to be disrupted. So, that seems to be the key thing which is creating that difference in performance amongst a number of these companies and you can see some of the subsectors uh really displaying some of those concerns.

00:52 Speaker A

Do you think at this point it is better to look elsewhere in the market entirely?

00:55 Speaker B

So, I think it’s a bit of both. There are a lot of opportunities in tech right now because I think the sell off that we’ve had in the last couple of weeks, it’s hit almost everyone. To some extent there has been suffering across the tech space, even companies which are set to be beneficiaries that have really strong fundamentals, good boss business models are unlikely to be uh very much disrupted but should actually do well off the back of it. So there are going to be opportunities, but it does require investors to really know those companies and really have an understanding of what the AI cycle is going to be. So that is tough. And to your point, there are other opportunities and we’ve seen that with this really strong macro backdrop that we have right now and looking ahead that there is a broadening of earnings growth to a number of other sectors beyond technology. and so you are seeing other parts of the market really performing well. And so there are opportunities beyond tech that we think investors should be considering.

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