The tech sector is experiencing a sharp global sell-off today, dragging down chipmakers like Intel, AMD, Micron, and even the artificial intelligence (AI) darling – Nvidia.
What’s driving this weakness is a combination of a global market contagion (KOSPI crashed over 10% prompting a trading halt), resurgent fears of the US rate hike, and a valuation reset on the AI trade.
Against this backdrop, fund manager Tom Hulick has named three non-AI stocks suitable for those interested in rotating out of the plunging tech sector.
Eli Lilly (LLY)
While tech investors panic over premium valuations and a potential AI slowdown, Hulick points to Eli Lilly stock as a robust value growth alternative.
The tech sector’s vulnerability stems from its volatile dependence on speculative forward-looking hardware cycles, but LLY offers a defensive moat built on generational medical advancements – specifically its blockbuster weight-loss drug.
Though chipmakers like AMD and Intel suffer severe multiple compression under high-rate fears, Lilly’s growth is anchored to secular, inelastic healthcare demand.
Hulick believes the market is underestimating how tech and AI developments will boost pharma innovations, making Eli Lilly’s flat-ish year-to-date (YTD) performance an “attractive” entry point for capital rotating out of volatile semiconductor stocks.
Note that LLY shares also currently pay a dividend yield of 0.63%.
GE Vernova (GEV)
The semiconductor wipeout on Jun. 23 underscores the risks of “crowded trades” where valuations outpace near-term cash flows.
In stark contrast, Hulick highlights GE Vernova shares, pointing to genuine, undeniable earnings momentum within the industrial power sector.
As money flees capex-heavy tech names whose future revenues are vulnerable to macroeconomic policy shifts, GEV stands out as a fundamental structural play.
The company provides the essential electrical grid infrastructure required to sustain the modern economy.
While chip manufacturers like AMD or Intel face compressing margins and global market contagion today, GE Vernova captures the market’s necessary pivot toward hard industrial assets, offering investors stable growth that is completely insulated from the immediate risks of the AI hardware trade reset.
A 0.19% dividend yield makes GEV stock even more attractive to own in 2026.
Panasonic (PCRFY)
Instead of chasing the highly volatile, consumer-facing tech giants, Hulick suggests a tactical pivot toward infrastructure-level technology via Panasonic.
As the tech-heavy KOSPI and Nasdaq plummet under leverage liquidations, Panasonic offers a grounded, utilitarian alternative focused on backup battery systems and supercapacitors.
These technologies are crucial for efficient energy storage and grid management – the very power systems required to fuel the broader economy.
While premium chip stocks suffer are extremely sensitive to surging US Treasury yields, Panasonic stock represents the “broadening out” of the market into tangible, industrial-tech small and mid-caps.
It allows investors to exit the over-leveraged AI trade while still capturing the indispensable secular growth of energy infrastructure.
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