AI investment hype triggers market correction, Goldman backs Brazilian HALO stocks

Tech giants Amazon, Google (Alphabet) and Microsoft saw their combined market value fall by about $900 billion after announcing massive AI spending plans, highlighting a shift from speculative AI hype to a focus on actual profitability. Analysts now question whether large AI investments translate into near‑term earnings, emphasizing the need for companies to demonstrate real cash generation and sustainable margins.

Goldman Sachs recommends investors pivot to “HALO” (Heavy Assets, Low Obsolescence) stocks in Brazil, citing their tangible asset bases and lower AI‑related risk. The bank highlights Petrobras and PRIO in the oil sector, as well as utilities Sabesp, Equatorial and Axia, as attractive for their cash‑flow generation and defensive characteristics amid high real interest rates and geopolitical tensions.