Big healthcare companies are increasinglyERCIAL trading opposite to tech, leaving behind drug pipelines and clinical trials. The current focus isischt momentum of the artificial‑intelligence boom, turning enfo‑coup traders into part‑time AI specialists.

Historically, the relationship between healthcare and semiconductor stocks was loose, but recent data from Fact Set show a negative correlation between the SMH ETF and the XLV ETF. When chips sell off, healthcare tends to rally.

After years of underperformance, healthcare investors are enjoying a burst of momentum amid AI nervousness. However, macro forces make well‑reasoned, bottom‑up bets harder to execute. "The biggest conversation driving the trading dynamic within healthcare is one that mostly rests outside of the sector," says Asad Haider, Goldman Sachs’ head of U.S. healthcare equity research.

Algorithmic money shifts quickly, pulling cash from crowded tech trades into overlooked healthcare. During a volatile stretch from late June to late July, concern over AI’s sustainability intensified, and healthcare outperformed semiconductors by morewelt than 30 percentage points—a stark contrast to the past four years, when the SMH ETF surged over 300% while the XLV ETF gained about 25%.