Why You No Longer Have to Own AI Stocks to Get AI Exposure

The stock market dealt with numerous obstacles this year, from tariffs and inflation to a record government shutdown and waning consumer confidence. But the main story, as has been the case for the past few years, was AI.

While the S&P 500 has managed its way to a 17% gain, headline-grabbing AI stocks have left the index in the dust. Nvidia has gained 33% in 2025, while Palantir, Micron and Seagate Technology have gained 153% and 200% and 245%, respectively.

Accordingly, many investors have been chasing AI-fueled rallies while overlooking potential risk factors. But chipmakers, large language model (LLM) developers and cloud computing providers aren't the only way to gain exposure to AI.

Today, companies — regardless of industry — are committing capital expenditures, or CapEx, to the deployment of AI agents with the aim of remaining competitive while bolstering revenues and net incomes.

That's something Robinhood CEO Vlad Tenev explained to Bloomberg Wealth earlier this fall. "Every company will become an AI company," he said. "But that will happen at an even more accelerated rate [than traditional tech adoption]."

Here's how investors can gain exposure to AI through stocks that aren't traditionally associated with the technology.

Looking beyond the hyperscalers

Apart from the companies providing chips or data center infrastructure services, over the past few years, the Magnificent Seven have been on a spending spree in order to achieve their AI ambitions.

Collectively, those companies committed around $300 billion in AI CapEx last year. This year, they're on pace to surpass $400 billion, and some estimates pin the Magnificent Seven's AI CapEx in 2026 at $533 billion.

Zooming in, the five largest AI hyperscalers now account for 27% of all S&P 500 CapEx, according to Goldman Sachs' 2026 investment outlook. The investment bank forecasts that global AI-related infrastructure spending could reach $4 trillion by 2030.

Companies aren't alone in that spending spree. According to Reuters, from 2013 to 2024, investors committed $1.6 trillion to AI equities. That's helped Nvidia and Apple surpass $4 trillion valuations, with the market caps of Alphabet and Microsoft closely trailing.

Meanwhile, thematic AI and robotics exchange-traded funds saw approximately $14.7 billion in inflows by the end of November 2025.

Circularity and concentration risk

The issue with gaining AI exposure via the hyperscalers — companies that operate data centers offering customizable computing, storage and networking resources, including Amazon's AWS, Microsoft's Azure and Alphabet's Google Cloud — is that gravitating toward a handful of interconnected businesses presents concentration risk.

Hyperscalers provide the computational power, scalable infrastructure and data management capabilities required by AI's deep learning and LLMs. That reliance creates a high-risk pattern among the companies marketing those services and the companies producing the essential components required for data center operations.

"U.S. equity managers remain constructive on AI's long-term potential but view recent circular funding rounds as signs of excess," Jonathan Woo, senior research analyst at Russell Investments, wrote in November.

That circularity — a practice wherein companies repeatedly invest in each other, effectively creating a self-reinforcing flow of capital as they reallocate funds for one another's services and products — is one factor fueling the discussion about a potential AI bubble.

On the other hand, companies whose core businesses fall outside of AI are turning to the technology to improve productivity and increase earnings to the benefit of shareholders who are able to minimize concentration risk through diversification.

How companies outside of tech are leveraging AI

From health care to mass transit, AI is rapidly moving beyond tech's conceptualizations and into practical applications that span industries as companies look to gain competitive advantages.

Stanford University's 2025 AI Index Report found that "78% of organizations reported using AI in 2024, up from 55% the year before."

The result is more stocks providing AI exposure while maintaining their primary business segments.

That includes companies operating in corners of the market that are less volatile than tech and communication services — the two sectors that are home to the Magnificent Seven, hyperscalers and pure-play AI stocks.

While these investments are unlikely to provide the eye-catching gains of AI firms like Nvidia and Palantir, they're equally unlikely to expose shareholders to the downside risks that accompany high-flying stocks.

Consumer staples, energy and utilities are leaning into AI

Companies in defensive sectors — including consumer staples, energy and utilities — are often overlooked. But because these sectors provide essential goods and services and are thereby relatively stable, they're a go-to for investors looking to hedge against volatile positions.

Walmart is a discount department store operator, the largest grocer in the U.S. and an e-commerce competitor to Amazon. But the company is leveraging AI to personalize online shopper experiences and optimize supply-chain and in-store efficiency.

Its AI applications include inventory management, warehouse automation, predictive restocking and theft detection. The stock is up nearly 26% this year, outperforming the S&P 500 and marginally trailing Nvidia.

The world's largest independent petroleum refiner, Valero, is integrating AI across numerous operations, including 17 pilot programs aimed at increasing efficiency from the company's plant floor to its corporate data management. In its third-quarter earnings call, Vice President Greg Bram noted that Valero is using robotic automation and AI for equipment inspection.

Valero is also applying AI to its sustainable aviation fuel and renewable diesel production processes. Despite the energy sector's struggles in 2025, the stock has posted a year-to-date gain of more than 44%.

In the utilities sector, Constellation Energy — the largest producer of carbon-free energy in the U.S. and a major electricity supplier — has implemented AI programs that improve nuclear plant operations, including predictive maintenance. The power provider is enhancing grid stability and reliability via AI tools that help manage demand response.

Constellation Energy is also using machine learning to help its engineers predict fuel needs, configuring requirements that result in maximized power output and reduced operational costs. The stock is up more than 49% this year.

Gaining AI exposure while hedging against tech downturns

Just because those examples fall outside of the AI space doesn't mean they're without their challenges. Those defensive sectors are still prone to souring consumer confidence, cyclical oil production and steep investment demands for grid maintenance and modernization.

But when elevated AI stock valuations and fearful investor sentiment cause the tech and communication services sectors to pull back, these stocks can insulate investors' portfolios from additional downside risk.

According to Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, "In trading, you have to be defensive and aggressive at the same time. If you are not aggressive, you are not going to make money, and if you are not defensive, you are not going to keep money."

With AI, investors now have the opportunity to achieve those tasks in unison through often-overlooked sectors.

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