Investors rushed out of the AI trade this past week and piled into materials, industrials, financials and healthcare, representing a sector rotation that could have staying power, according to Wall Street analysts.

Oracle stock led the latest AI selloff after the hyperscaler’s earnings report and spending guidance renewed fears about excessive capital expenditures.

Jeremy Siegel, Wharton professor emeritus and WisdomTree chief economist, told CNBC on Friday that it’s hard to be certain about the current stock market rotation because there have been “so many head fakes in the past.”

“But as I said, this one has more legs in the sense that there are more things that are happening that throw doubt on how fast or how profitable all the AI buildout is going to be,” he added.

In Oracle’s cas

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