In a twist of fortune, Wall Street has decided it’s out with the new, in with the old. With the government shutdown closing in, excitement for pure-play AI stocks has already cooled amid a refocus on bubble risks and lofty valuations. Now, savvy investors are turning the spotlight to “old-economy” firms that have quietly reaped real AI gains — often far from the headlines.

• BofA believes the AI fixation, spanning chips to power plants, may blind investors to undervalued buy-rated stocks — the ones poised to shine if growth giants stumble.
• As some money managers trim their frothiest AI positions, capital is already shifting toward these blue-chip names — firms quietly improving margins through behind-the-scenes tech implementation.

The contrarian bet: With hype starting to fade, WalmartWMT

— once dismissed as a tariff-laden grocer — has notably overhauled its supply chain and inventory with AI, boosting profits in the process. Defense heavyweight RTXRTX

is applying the tech on the factory floor, while VikingVIK

and McCormickMKC

stand out as durable players poised to benefit further from AI implementation. When it comes to the high-octane AI arms race, perhaps we can borrow some wisdom from the Navy SEALs: “Slow is smooth, smooth is fast.”