AI Isn’t Just Hitting Tech Stocks - The Hidden Sectors Investors Should Watch Now

The hype attributed to AI has primarily focused on technology firms like Nvidia, Microsoft, and Alphabet. However, this trend will greatly change in 2026. Artificial Intelligence is beginning to spread beyond just computers and software in Silicon Valley. It's beginning to transform various other industries and provide efficiency boosts, new revenue opportunities, and ROI better than some of the Magnificent Seven.

The race to capture the next AI opportunity has resulted in the AI effect on all marketsbecoming ever more relevant. The market opportunity for AI has shifted from Tech Stocks to the adoption of AI in other industries, creating new opportunities in previously overlooked AI investment opportunitiesin non-tech AI stocks.

This article will show the other sectors that will begin to benefit from AI by 2026 and beyond. Other real-world examples, promising stocks, and how to put your portfolio in the right space for the next wave of Artificial Intelligence.

 

The Influence of Artificial Intelligence on the Economy and Stock Markets

AI has boosted tech stock prices by making large investments in chips, data centres, and cloud infrastructures. In 2025, the value of data centre investments in AI was in the hundreds of billion dollar range. This drove record earnings for semiconductor and hyperscaler businesses.

AI is compared to electricity and the internet because its biggest effects are often felt outside of where the technology is first created. A pure technology, AI can help businesses decrease costs, accelerate innovation, and increase profit margins. As AI continues to be adopted by a wider range of businesses, positive effects are beginning to be recognized. Early data from 2025 shows profit margins of AI adopters across various industries, approximately 2 times the global average.

AI's influence and indisputable positive effects are being recognized and acknowledged on earnings calls and reports of backlogs. Utilities are reporting surges in demand for data centres. Healthcare is experiencing accelerated drug development. Industrial players are also reporting multi-year contracts for AI-powered infrastructure. 

The positive impact of AI explains why equal-weighted market indices (which reduce the influence of mega-cap tech businesses) have achieved record levels, even in the face of downward pressure on some software stocks in early 2026.

The AI stock market trendin 2026 is changing from AI unsophisticated blind optimism, to AI selective sponsorship. Investors are shifting from "AI exposure" to "AI investment proven return." Companies that are able to demonstrate AI-induced cost savings or revenue increases are gaining positive attention, and those that are still experimenting are being avoided.

 

 

Sectors to Watch For AI and Untapped Potential

 

1. Energy and Utilities – AI Infrastructure Expansion

Hyperscale data centres are the factories of the AI era and require significant amounts of energy. The rapid construction of new data centres is driving the demand for even more electricity in certain areas. For instance, Virginia Data Centre Alley is home to 35% of hyperscale data centres, and new areas are developing.

Dominion Energy (D) is a case in point. Over 25% of its income comes from data centres in Virginia. The company has established connections to hundreds of data centres and is currently developing small modular reactors (SMRs) to meet future demand. At 4.4% dividend yield and with 5-7% annualised Operating Earnings Per Share (EPS) growth estimated from 2029, Dominion is offering a defensive measure on participation in the AI expansion.

NextEra Energy (NEE), like other utility companies, is benefiting from tech companies' increasing preference for clean energy. This gives utility companies with renewables an advantage. Analysts expect strong demand for power infrastructure upgrades, power lines, and even natural gas, which are seen as bridge fuels.

Healthcare and Life Sciences - Faster Innovation, Lower Risk

AI is changing the future of drug development, clinical studies, diagnostics, and personalised medicine. AI can speed up activities that took several years and were extremely costly. Protein folding, molecular simulation, and real-world evidence analysis are classic examples of processes that can now be performed using AI. Abdrn Life Sciences Investors (HQL) is a closed-end fund that invests in life sciences through a diversified, high-yield (11.6%) strategy. 

The fund is invested in life sciences blue-chip companies like Amgen, Regeneron, and Gilead, which are applying AI to development. The fund exposes the shareholders to the risks that the AI life sciences industry fails to deliver, but they are guaranteed to receive income. Such risks are mitigated by purchasing the fund when it is discounted to net asset value.

A multi-billion dollar company, United Health Group, is also using AI in predictive analytics, claims processing, and scenario modelling to improve efficiency. The healthcare industry is highly admin-intensive, and the use of AI can significantly improve margins.

 

3. Financial Services - Automation and Personalisation at Scale

Fraud detection, compliance automation, credit scoring, and hyper-personalised customer experience are some of the areas where AI has been implemented by banks, insurers, and asset managers. AI technologies are replacing legacy systems and opening new avenues for efficiency.

In AI-driven risk management and trading, major participants like JPMorgan Chase are making big bets. With the potential for significant margin expansion, AI-driven underwriting and claims management are being used by insurance companies. Compounding streams of low-risk returns are being generated by these use cases and are far less risky than chip stock investments.

 

4. Industrials, Infrastructure, and Construction - Building the Physical Backbone

The AI boom has created an urgent need for infrastructure such as cooling systems, data centre power distribution, fibre optics, and entire data centre campuses. Thus, there has been a rapid need for heavy construction, and electrical and cooling systems.

Specialising in data centre cooling solutions, including modular units and liquid cooling, Comfort Systems USA (FIX)has identified high-margin opportunities, leading it to revise its earnings guidance upwards on multiple occasions.

Vertiv Holdings (VRT)has critical modular power and UPS as well as thermal management systems. With major chipmakers and hyperscalers, it is situated to be a core component of next-generation AI infrastructure.

Sterling Infrastructure (STRL)has recorded '60%' of its revenue from its E-Infrastructure segment, which consists of large-scale data centres. For the last three years, the company has witnessed a '64%' year-on-year increase. Most of the increase has been due to work related to artificial intelligence (AI).

Even companies that supply materials are benefiting. Alcoa (AA)provides aluminium for things like server racks, cooling towers, and renewable energy components that are critical to the functioning of data centres.

 

Non-Technology AI Stocks

Here are the non-technology AI stocks that have been performing well and are predicted to have good performance in 2026:

- Dominion Energy (D)– stable utility company offering data-centre revenue and has a good yield.

- Comfort Systems USA (FIX)– strong expansion in HVAC for data centres; rising earnings predictions.

- Vertiv (VRT)– infrastructure leader benefiting from AI cooling and power.

- Sterling Infrastructure (STRL)– substantial backlog due to AI construction.

- Abrdn Life Sciences Investors (HQL)– high-yield healthcare fund benefitting from AI-induced R&D.

The above-stated companies have higher valuations and lower exposure to the growing mega trends than many tech companies.

 

AI Investment Opportunities: Strategic Portfolio Positioning

The highest value AI investment opportunities in 2026 come from diversification. Instead of solely focusing on tech, consider investing in multiple sectors, including:

- ETFs for infrastructure and utilities that focus on data centres and power.

- Healthcare fundsor specific biopharma companies using AI.

- Industrial and materials stocksrelated to the physical AI buildout.

- Closed-end funds like HQL for high income and growth.

A balanced strategy, perhaps 60% traditional tech and 40% non-tech AI exposure reduces concentration risk and captures the widening AI impact on stocks.

Key risks remain the execution of large capex, potential delays for return on investment, and regulatory risks (particularly related to energy and healthcare). Still, companies that are benefiting from AI in their earnings are distinguishing themselves.

 

The AI Stock Market Trend 2026 and onwards

The AI stock market trendhas reached a more advanced stage of development. The beginning of 2026 saw a sell-off in some software stocks as investors came to terms with the reality of AI in the market. Conversely, the infrastructure, energy, and industrial sectors outperformed.

Analysts have predicted that there will be an additional $5–8 trillion in spending for AI-related projects every year until 2030. Most of the spending will be in physical assets (i.e., power plants, transmission lines, cooling systems, buildings) instead of spending on other software. The earnings obtained are now expanding beyond the “Magnificent Seven”. This will make for healthier, more sustainable markets in the future.

 

Conclusion

AI is not only affecting the stock market and tech industries. These industries are flowing into the real economy, creating real AI investments in non-tech AI stocks, which provide both growth and, in a lot of cases, attractive dividends or reasonable valuations.

When 2026 arrives, the AI stock market will have expanded, and investors will be in a better position to capture the upside from the economy. No longer are the hidden sectors of energy, healthcare, infrastructure, and industrials pushed to the side. All of the hidden sectors have now become an essential part of the AI story.

While building a long-term portfolio or looking for tactical efforts, watch these areas. The AI revolution is in its beginning stages and is likely to end in surprise.

 

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.