{
  "id": 16155468,
  "title": "If the AI Bubble Bursts, These Stocks Will Be Winners",
  "url": "https://urgent.news/2026/10/23/if-the-ai-bubble-bursts-these-stocks-will-be-winners",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-23T05:30:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/23/if-the-ai-bubble-bursts-these-stocks-will-be-winners/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "As worries about the AI sector grow, certain stocks are emerging as potential winners. CoreWeave, a key player in AI infrastructure, has recently seen its stock plunge to its lowest point since shortly after its IPO, partly due to rising bond yields. Meanwhile, Meta Platforms experienced a 7% drop despite strong earnings, as investors grappled with the company's negative free cash flow in its first quarter due to increased spending on AI.\n\nHowever, despite the volatility in the AI sector, treasury yields have begun to fall as investors rotate out of stocks and into bonds. The 10-year yield dropped by 3.8% to 4.95%, marking its first time below 5% in a month, and has declined by 7% over the past two weeks. This shift in investor sentiment could lead to a sell-off in AI stocks and a corresponding rise in bond yields, providing an opportunity for investors to capitalize on the situation.\n\nInterestingly, while tech stocks are falling, a different sector is experiencing a surge. Homebuilding stocks have jumped, buoyed by falling interest rates, attractive valuations, and investor optimism about potential rate cuts. The State Street SPDR S&P Homebuilders ETF (XHB +3.77%) rose by 3.8%, with stocks like Pool Corporation, Restoration Hardware, and Lennar gaining 14.4%, 9.5%, and 9%, respectively.\n\nInvestors now see a 93% chance that the Federal Reserve will keep rates steady at 375-400 basis points, and even expect them to rise over the next year. This shift in expectations, along with the strong demand for AI compute and bottlenecks in the supply chain, suggests that the AI bubble may not be as imminent as some initially feared.\n\nFor investors with AI-related gains, shifting some of those profits into homebuilder or home furnishing stocks could be a prudent move. This strategy has proven successful before, as evidenced by apparel stocks like Nike, Lululemon, and Deckers Outdoor jumping in a single session earlier this month. As interest rates continue to drop, the housing sector may become an increasingly attractive investment option.",
  "summary": "On a day when the Nasdaq plunged, housing stocks were surprising winners.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "If the AI Bubble Bursts, These Stocks Will Be Winners",
        "url": "https://urgent.news/2026/10/23/if-the-ai-bubble-bursts-these-stocks-will-be-winners-16156413",
        "published": "2026-10-23T05:50:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}