Fund manager picks three non-AI stocks as chips tumble

A sharp global tech sell-off this week knocked down chipmakers including Intel, AMD, Micron and Nvidia. South Korea’s KOSPI fell more than 10% on June 23, triggering a market trading halt. Renewed concern about higher US interest rates and a valuation reset in AI-related names put pressure on technology shares and led to heavy multiple compression in semiconductor stocks.

In response, fund manager Tom Hulick recommended three non-AI stocks for investors reducing exposure to chip and AI hardware names: Eli Lilly, GE Vernova and Panasonic.

Hulick highlights Eli Lilly for revenue tied to its weight-loss treatment and other drug franchises. Lilly’s shares have been broadly flat year-to-date; the stock’s dividend yield is about 0.63%.

For industrial exposure, Hulick points to GE Vernova. The company supplies electrical grid equipment and power infrastructure, and its business has reported improving results. GE Vernova’s dividend yield is near 0.19%.

Hulick recommends Panasonic for investors seeking exposure to energy storage and grid management technologies. Panasonic’s products include backup battery systems and supercapacitors used in energy storage and utility applications.

Market participants have cited the June 23 semiconductor rout as an example of how quickly gains in speculative sectors can reverse when macro expectations change. Investors reallocating capital after the sell-off are examining sectors with more predictable cash flows and visible near-term earnings.