It may feel like artificial intelligence deals are sucking all the oxygen out of the stock market these days, but Goldman Sachs says there are still notable companies to buy that have nothing to do with artificial intelligence. Thanks to strong AI trading, the S&P 500 and the tech-heavy Nasdaq Composite Index have set multiple intraday and closing record highs this year, with the latest set just last week. That’s why Goldman Sachs analysts in a May 15 report highlighted the challenge of finding investment opportunities separate from technology and AI. “Many investors are expressing the view that today’s stock market is not so much a stock market as it is ‘one big trade,’ as AI and momentum work together to drive the direction of the S&P 500,” said Goldman’s chief US equity strategist. “We believe investors should continue to focus on stocks where earnings growth and corrections provide fundamental support, regardless of whether the returns are driven by AI or other tailwinds.” Low Sensitivity Snyder highlighted a portfolio of Russell 1000 stocks with low price sensitivity to both AI trading and the market’s pricing of economic growth. The stocks selected in the table below also recently had positive earnings revisions by analysts. Eli Lilly’s stock price is down about 1% this year, and Goldman believes only about 9% of the company’s recent gains were driven by the U.S. economic outlook and AI. Morgan Stanley reiterated its overweight rating on Lilly earlier this month. Analyst Terrence Flynn’s price target of $1,344 suggests an upside of 26.2% from Friday’s closing price. “LLY markets Mounjaro OUS for T2D and obesity, and sales for the past four quarters have exceeded consensus due to rising share and accelerating prevalence and spread of GLP-1 obesity. Our new analysis suggests that consensus forecasts for 2026 may remain conservative,” Morgan Stanley analysts wrote, referring to the type 2 diabetes drug’s sales outside the United States. Contractually, cybersecurity stock Fortinet is up 68.7% this year. Goldman attributed 19% of its recent profits to the U.S. economic outlook and AI. Earlier this month, BTIG analyst Gray Powell upgraded Fortinet from Neutral to Buy after the company’s “exploding first quarter results.” Fortinet stock closed Friday at $133.93, above Powell’s $125 price target. “While checks heading to print were positive and up compared to the prior quarter, we were surprised by the magnitude of the beat. Revenue exceeded market expectations by 7% and operating income by 22%,” Powell wrote. “Overall, we are more confident in FTNT’s ability to maintain mid-teens earnings growth over the next few years.” At pet food and supplies retailer Chewy, Goldman sees AI trade and the U.S. economic outlook contributing just 11% of the stock’s recent gains. Chewy stock has fallen 37% this year. But in a note last week, Wolfe Research called Chewy one of the top contenders on the internet. Analyst Shweta Khajuria, who currently has an Outperform rating on the Plantation, Florida-based company, said: “With Chewy becoming a show-me story, we view the FY2026 outlook as a moderate risk… but we believe current prices reflect downside/conservatism.” Analysts’ price target of $39 is nearly double Friday’s closing price of $20.73.
