Three stocks to consider if trimming AI exposure

UBS reported that some investors reducing exposure to the artificial intelligence trade are reallocating capital into quality defensive and value stocks after large corrections in AI infrastructure and semiconductor indices in 2026.

The bank highlighted a shift into companies with stable cash flows, stronger earnings momentum and lower sensitivity to technology cycles ahead of the upcoming earnings season.

Eli Lilly reported worldwide revenue of $19.8 billion in the first quarter, a 56% year-over-year increase. Lilly said sales of its GLP-1 treatments Mounjaro and Zepbound totaled $12.8 billion, with Mounjaro revenue up 125% from a year earlier. The company reported non-GAAP earnings per share of $8.55, a 156% increase, and raised full-year sales guidance by $2 billion to as much as $85 billion.

McDonald’s posted first-quarter revenue of $6.5 billion, a 9.4% increase from the prior year. The chain reported worldwide comparable sales growth of 3.8% across operating segments and operating margins of 45.3%. McDonald’s reported adjusted earnings per share of $2.83 and said targeted value promotions and menu strategies supported traffic and market-share gains.

Charles Schwab reported first-quarter revenue of $6.5 billion, up 15.7% year over year. The brokerage has reduced reliance on higher-cost supplemental funding while adding billions in core net new assets and expanding active brokerage accounts. Market participants have cited forward projections of about a 16% year-over-year rise in net interest revenue for Schwab; the shares carry a roughly 1.25% dividend yield.

UBS presented Eli Lilly, McDonald’s and Charles Schwab as examples of companies investors are moving into to reduce concentration in AI-related sectors and to increase exposure to companies with measurable earnings momentum and lower correlation to semiconductor and infrastructure swings.