Energy Stocks Lead the Market Higher as AI Fears Shake Tech
The energy sector is having a moment in 2026. While tech investors worry about artificial intelligence disrupting their favorite companies, energy stocks have emerged as the unexpected leader in the S&P 500 this year.
Here’s what you need to know about the market’s latest shift.
Energy Takes the Lead
The energy sector has become the best-performing group in the S&P 500 so far this year. This isn’t just about rising oil prices, though that has certainly helped. Crude prices have climbed nearly 10% as risks to global oil supplies, particularly from Venezuela and Iran, have intensified.
But there’s more to the story than just oil. Energy companies have been cleaning up their balance sheets, returning cash to shareholders through dividends and buybacks, and benefiting from tighter supply conditions that analysts say could persist for years.
The AI Casualty List Grows
Speaking of AI, the technology continues to send shockwaves through the market. C.H. Robinson, a major trucking and logistics company, saw its stock suffer its worst day in over six years on Thursday. Investors are worried that AI-powered logistics platforms could disrupt the traditional freight brokerage business that C.H. Robinson has built its empire on.
The stock dropped sharply as fears about AI disruption focused on the transportation and logistics sector. This follows similar selloffs in other industries where investors see AI as a potential threat to established business models.
Chip Stocks Stay Strong
Not all tech is getting hit. Applied Materials jumped after the company reported earnings and CEO Gary Dickerson made a bold prediction. He expects semiconductor equipment revenue to grow more than 20% this year, with AI potentially lifting overall chip industry sales to $1 trillion.
That kind of optimism in the chip sector is significant. Applied Materials supplies the equipment needed to manufacture semiconductors, so when they speak, investors listen. The company sees AI demand driving growth across the entire chip ecosystem.
Arista Networks also had a good day, succeeding where Cisco struggled to calm margin concerns and redirecting investor attention toward AI opportunities. The networking company’s stock benefited from its stronger positioning in the AI infrastructure space.
What This Means for Your Portfolio
The divergence between energy and AI-exposed tech stocks tells an interesting story. Here’s the takeaway:
First, energy isn’t just a bet on oil prices. The sector has improved its financial discipline significantly. Many energy companies are now prioritizing shareholder returns over growth at all costs, which is music to value investors’ ears.
Second, AI disruption is real and it’s hitting different sectors at different times. Logistics companies are the latest to feel the heat. If you’re holding stocks in industries where AI could fundamentally change the business model, it’s worth thinking about your exposure.
Third, the chip sector remains central to the AI story. Companies that supply the infrastructure for AI computing are seeing demand that just keeps climbing. The $1 trillion chip industry milestone that Applied Materials mentioned would be a historic level of sales.
The Bottom Line
Markets are shifting. Energy is leading. Tech is mixed, with AI winners and losers emerging within the sector. The key is to look beyond the headlines and understand which companies are positioned to benefit from change and which could be disrupted by it.
As always, consider your own investment goals and risk tolerance before making any changes. The market will do what it does, but being informed helps you make better decisions.
Sources: MarketWatch, Applied Materials earnings report
