Artificial intelligence first spurred massive gains to record levels in the stock market. Now, AI is taking out equities, one sector at a time. First, it was software getting pressure. The iShares Expanded Tech-Software ETF (IGV) has fallen nearly 16% in the past month on fears AI will curb demand for software services. Financials got wracked last week as well after tech platform Altruist unveiled a new tax planning tool powered by AI. The State Street Financial Select Sector SPDR ETF (XLF) dropped 4.8% last week, marking its worst weekly performance since April. Then office real estate stocks got crushed Thursday on concern AI will lead to a rise in unemployment , thus decreasing demand for commercial real estate. Lastly, trucking and logistics names fell as investors believed AI could curb freight inefficiencies — thus lowering demand for the industry. “[Last] week felt like a game of whac-a-mole,” wrote Tony Pasquariello, global head of hedge fund coverage at Goldman Sachs. “The big question is, while the market separates ‘rent-seekers’ from companies with strong moats, where does one hide?” Luckily, there are some stocks investors can turn to and weather the artificial intelligence storm. JPMorgan compiled a list of “mispriced” stocks that are most insulated from AI disruption. Buy now, pay later giant Affirm made the list. The stock, which JPMorgan rates as overweight, has plunged more than 17% this month. But fundamentally, “business performance is as strong as ever, as the company continues to post premium [gross merchandise value] growth ( > 25%) and stable credit performance, and GAAP operating profit margins are expanding (albeit off a low base),” wrote analyst Reginald Smith. Another name that made the cut is Carvana . Despite being down more than 14% in February, analyst Rajat Gupta thinks “CVNA’s vertically integrated infrastructure and moat at [the] end-of-line for AI disruption.” Other stocks on JPMorgan’s list include Roku , Spotify Technology and CrowdStrike .
AI Whac-a-Mole takes over the stock market. JPMorgan says these stocks are insulated
Feb 17, 2026
