# US Midterms Could Shift Stocks to Healthcare

> Goldman Sachs predicts healthcare will rise as AI investment moves beyond infrastructure.
- Title: US Midterms Could Shift Stocks to Healthcare | Shortify
- Summary: Goldman Sachs predicts healthcare will rise as AI investment moves beyond infrastructure.
- Keywords: us midterm elections, healthcare, ai investment, goldman sachs, stock market, ai infrastructure, data centre stocks, memory stocks, optical networking stocks, neocloud stocks, Financialexpress
- Source: Financialexpress — https://financialexpress.com/business/news/us-midterms-may-accelerate-stock-market-shift-why-goldman-sachs-is-betting-on-healthcare/4379300
- Author: Dimple Singh
- Published: 2026-11-07T12:21:59+00:00
- Read time: 2 min
- Topics: us midterm elections, healthcare, ai investment, goldman sachs, stock market, ai infrastructure, data centre stocks, memory stocks, optical networking stocks, neocloud stocks, business, money
## Goldman Sachs sees healthcare as next AI investment
Goldman Sachs believes healthcare could emerge as the next investment opportunity in the AI trade as investors look beyond data centres, chips and networking stocks.

> i think the next leg of the ai trade is actually healthcare
## US midterms may accelerate stock market shift
The US midterm elections could give fresh momentum to a shift already underway in the stock market, with healthcare emerging as a potential investment opportunity in the next phase of the artificial intelligence trade.
## Healthcare offers defensive characteristics
Lou Miller, global head of Custom Basket Trading at Goldman Sachs FICC and Equities, believes healthcare could offer investors a combination of defensive characteristics and the potential for faster earnings growth.
## AI infrastructure stocks declined sharply
According to figures cited by Miller, data centre stocks fell 36%, memory stocks 42%, optical networking stocks 46%, and neocloud stocks 57% from their respective market highs earlier in 2026.
## Healthcare adoption of AI growing
Healthcare companies are increasingly adopting ai in areas such as medical tools and diagnostics, potentially creating opportunities for businesses that apply the technology rather than develop the underlying models.
## Healthcare as defensive sector
Miller sees healthcare as a potentially defensive sector because of its historically limited correlation with ai-related stocks, making it attractive for investors seeking earnings growth and market volatility protection.
## Cyclical and secular factors in healthcare
Cyclical factors are linked to shorter-term economic changes, while secular factors refer to longer-term trends that could provide healthcare with sustained growth through ai adoption.
## Healthcare earnings growth potential
Goldman Sachs expects healthcare to record accelerating earnings growth next year, combining potential earnings improvement with defensive characteristics for investors.
## Consumer staples not automatically defensive
Miller cautioned that expensive defensives like consumer staples may not be defensive, as their earnings yield is half the yield on high-yield bonds and dividend yield is half the yield on the 10-year us treasury.
## Investors should watch key indicators
Investors should monitor employment data, inflation, geopolitical developments, corporate earnings announcements, and the us federal reserve’s december 9 policy decision for market trends.
## Healthcare as next phase of ai investment
The next phase of ai investment could shift from infrastructure providers to businesses using ai to improve operations, products and services, with healthcare as a key beneficiary.
## Key takeaway

Goldman Sachs says healthcare could become the next AI investment opportunity after infrastructure stocks declined.