Non-AI Stocks Catch the S&P 500 as Tech Slides

TL;DR: Through Oct. 22, a Goldman Sachs index that tracks the S&P 500 without stocks classified as "AI enablers" was up 12.4%, ahead of the standard S&P 500's 12%, CNBC reported. The ex-AI version trailed for most of 2026, so the catch-up is the story. As tech rallied in Monday trading, the two indexes were roughly tied.

What happened to the S&P 500 without AI?

It caught up, and the reason is weight. Tech and AI-related companies make up about 45% of the S&P 500, according to CNBC. That concentration helped power the index for years, but this month it has worked the other way, with the S&P 500 tech sector down about 7% while other sectors have held up.

The pain showed up in single names too. Meta Platforms shares sank almost 7% on Thursday after the company outlined more heavy capital spending and plans to issue additional shares, CNBC reported.

Goldman launched the ex-AI measure earlier this year with S&P. It starts from the S&P 500, removes companies perceived to be enablers of AI, and then applies the usual S&P weighting to what remains, per CNBC.

Measure	Reading	Source
Goldman S&P 500 ex-AI index, through Oct. 22	Up 12.4%	CNBC
S&P 500, same period	Up 12%	CNBC
Tech and AI share of the S&P 500	About 45%	CNBC
S&P 500 tech sector, this month	Down about 7%	CNBC

The gap is 0.4 percentage points. That is small. And "ex-AI" is Goldman's own definition of who counts as an enabler, so a different list would produce a different index, which is worth remembering before you lean on the comparison.

Is money rotating into defensive sectors?

The direction points that way. Edward Jones, citing Bloomberg data, describes a rotation away from technology and communications services toward healthcare, utilities and consumer staples, with the S&P 500 in aggregate broadly stable.

So the headline index barely moved, yet what sat underneath it changed. A portfolio that tracks the S&P 500 can look calm while its internal mix swings.

Why does this matter if you already own an index fund?

Because an index fund is only as diversified as the index. If roughly 45% of the S&P 500 is tech and AI-related, a broad fund gives you a large AI position whether you chose one or not.

Cambria's Meb Faber, speaking on the Full Signal podcast, described what he calls a bear market in diversification. He said the S&P 500 has compounded at about 15% a year since 2009. His point was not that a crash must follow. It was that investors shouldn't expect 15% returns forever.

What counts as diversification beyond AI?

It means owning things whose returns depend on different forces. Defensive stocks are one answer, though they still sit inside the same public market. Private and real-asset exposure is another, with its own costs.

If you want assets that don't trade on AI sentiment, gold, commodities and real assets as inflation hedges is the place to start. If you're weighing approaches built to behave differently from the index, hedge fund strategies for accredited investors sets out the main ones. And before you add a layer of managers, the fee math on funds of funds shows what that layer costs you. Private funds also call capital on a schedule you don't control, which our capital call guide walks through.

Private holdings are illiquid and speculative, and some can lose the entire investment. Diversifying away from AI doesn't remove risk. It changes which risks you hold.

Common mistakes

The first is reading one month as a trend. A tie between two indexes after a rotation says little about where either goes next, and the ex-AI index only caught up after trailing for most of the year.

The second is assuming that a long list of funds means diversification. Several funds that each hold the same mega-cap tech names will fall together.

The third is treating the defensive sectors as a safe harbor. Utilities and staples can fall too, and nothing in this reporting says they're immune.

FAQ

Did non-AI stocks beat the S&P 500? Briefly. Goldman's ex-AI index was up 12.4% through Oct. 22 against 12% for the S&P 500, per CNBC. It then pulled level as tech rallied Monday. It had trailed for most of 2026.

How much of the S&P 500 is tech and AI? About 45%, according to CNBC. That weighting helped lift the index for years and has hurt this month, when the tech sector fell about 7%.

What is an AI enabler in Goldman's index? Goldman excludes companies it perceives as enablers of AI, then weights the rest using the S&P methodology, per CNBC. The classification is Goldman's, so a different provider could draw the line elsewhere.

Should I sell tech stocks because of this? This article isn't a recommendation to buy or sell anything. The practical question is how much AI exposure your portfolio already carries and whether you chose it.

One thing to do today

Open the holdings of your largest index fund and add up the tech and AI names. If the total is close to 45%, you've found your real AI exposure, and you can decide with a qualified adviser whether it is the amount you want. If you'd like this kind of check on the news each week, subscribe to the free AIN briefing.

Educational content only. Not investment, tax, or legal advice. Not an offer or solicitation to buy or sell securities. Past performance does not guarantee future results. Private-market investments are illiquid and involve risk of loss, including total loss of capital. Consult qualified advisers. Angel Investors Network is not a broker-dealer or investment adviser.