Growth Stocks Flash Bullish 'Golden Cross' On AI Spending Spree: Expert Reveals Next Wave Of Winners Beyond Chipmakers

Growth stocks are decisively outperforming their value counterparts, flashing a bullish technical “golden cross” as the artificial intelligence spending spree continues to reshape the market.

This rally, fueled by massive capital expenditure from tech giants, is now leading experts to identify the next tier of companies set to benefit beyond the obvious chipmakers.

Growth Stocks Make ‘Notable Comeback’ On Rising AI CapEx

The trend is highlighted in the Russell 1000 Growth (RLG) versus Value (RLV) ratio (RLG/RLV) chart, which is breaking out to new highs. According to Adam Turnquist, Chief Technical Strategist for LPL Financial, growth has made a “notable comeback” thanks to an “unwavering commitment to AI capital expenditures.”

Turnquist noted that the recent “bullish crossover between the 50-day and 200-day moving averages” — the golden cross — confirms the breakout from a yearlong consolidation range and points to a more durable uptrend.

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IT Services And Consulting Firms Poised To Benefit Beyond The Chipmakers

While semiconductor stocks have been the primary beneficiaries of the AI boom, the next wave of growth may come from less obvious sectors. Bruce Keith, Co-founder of InvestorAi, told Benzinga that the focus should shift to companies that facilitate AI adoption.

“In the short term (next 5 years) the IT services and consulting firms will do very well,” Keith stated. He explained that as the “agentic automation wave is just starting,” these service-oriented firms will be crucial in helping businesses integrate new AI technologies.

Keith predicts the winners beyond that time horizon will be firms that successfully “productise more of their offering and will look more like product companies than services players.”

Here’s a list of a few U.S.-listed large-cap IT services and consulting firms;

Price Action

The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell on Friday. The SPY was down 0.23% at $643.44, while the QQQ declined 0.44% to $577.34, according to Benzinga Pro data.

On Monday, the futures of the S&P 500, Nasdaq 100, and Dow Jones indices were trading mixed.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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