Summary

• Technology stocks have dominated investor attention in recent years, but another innovative sector may be quietly building momentum.
• While healthcare may glean some luster from an AI halo, the investment case is also one of counterbalance to the AI juggernaut.
• We observe that healthcare returns in 2025 were driven by fundamentals distinct from the mega-cap technology cohort that dominated headlines and experienced heightened volatility.

Originally published on May 15, 2026

By Carrie King & Erin Xie, PhD

In our Q2 Equity Market Outlook, we identified healthcare as one area where artificial intelligence (AI) is having tangible benefits and presenting investors

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