Concerns regarding the disruptive risks of artificial intelligence (AI) are creating a sharp divergence within the travel and leisure sector, with online travel platform stocks experiencing significant declines while traditional hotel operators see substantial gains. Data shows that shares of TripAdvisor (TRIP) have plummeted 29% this year, hitting a record low following disappointing earnings this week. Similarly, Booking Holdings (BKNG) and Amadeus IT Group SA have seen their stock prices fall by 22% year-to-date. Citigroup analysts further downgraded their rating on Amadeus IT Group SA, stating that given the rising risk of AI disruption, they expect the European travel technology provider will "struggle to deliver meaningful returns in the near term."

In stark contrast, Marriott (MAR) shares have surged 14% so far this year, while Hilton (HLT) stock has risen 12%. Following Hilton's earnings report on February 11, analysts widely raised their price targets for the company.

The sell-off in certain travel stocks accelerated in early February as investors fled companies perceived as vulnerable to AI-driven transformation. This selling pressure, initially triggered by new tools from Anthropic, has since spread to the IT services, wealth management, real estate platform, and logistics sectors. On Tuesday, an obscure startup, Altruist Corp, launched a tax strategy tool designed to help financial advisors create personalized strategies for clients. This development directly led to stock plunges of over 7% for companies including Charles Schwab (SCHW), Raymond James (RJF), and LPL Financial Holdings Inc (LPLA). By Thursday, commercial real estate stocks tumbled as traders worried that broader adoption of AI tools could reduce demand for office space. Major commercial real estate services firm CBRE Group Inc (CBRE) fell 8.8%, Jones Lang LaSalle (JLL) dropped 7.6%, Cushman & Wakefield declined 12%, and Newmark Group Inc. (NMRK) slid 4.2%. An index tracking office real estate companies fell 4.2%. REITs analyst Jeffrey Langbaum commented, "Concerns about declining office demand due to increased AI adoption have been present for some time; this is not a new issue. However, we are seeing these concerns spread to the actual providers of office space."

The sell-off across various sectors potentially vulnerable to AI disruption is the latest manifestation of a "sell first, ask questions later" mentality in the market. Anxiety is intensifying as hundreds of billions of dollars in AI investment begin to translate into commercial products with the potential to upend entire industries. John Belton, a manager at Gabelli Funds, noted, "Companies with any perceived disruption risk are being sold indiscriminately."

While AI breakthroughs have been a Wall Street focus in recent years, driving tech stocks and major indices to record highs, a fundamental question has persisted: Is this a bubble destined to burst, or a key force for a productivity revolution that will reshape corporate America? Since early last week, however, a series of actual AI product launches has triggered a sharp shift in market sentiment. Investors are now rapidly exiting positions to avoid any company with even a hint of replacement risk, rather than focusing on picking AI winners. Will Rhind, CEO of GraniteShares, stated, "Last year's logic was that we all believed in AI but were still looking for use cases. As we continually discover that AI's applications are becoming more powerful and compelling, disruption follows."

Some traditional sectors, however, have been spared from this AI-induced sell-off. The Dow Jones Transportation Average, which has lagged behind major U.S. indices for years, has recently outperformed, beating the S&P 500 by 13 percentage points over the past month and a half—nearing its largest outperformance since the financial crisis. The index, which includes industry giants like CSX Corp (CSX), FedEx (FDX), Old Dominion Freight Line (ODFL), and United Airlines (UAL), has been boosted by strong economic data and a trend of reducing exposure to tech giants. Demand for diversification among U.S. stock investors has enhanced the appeal of these "old economy" sectors. Previously, concerns about AI's potential disruptive impact, coupled with massive capital expenditure plans from hyperscale data center operators, prompted investors to rotate out of technology and into other areas. Strengthening manufacturing data has further reinforced this trend, providing optimistic signals for investors seeking safer investments. Sameer Samana, Global Equity and Real Assets Strategist at Wells Fargo Investment Institute, said, "This sector is most sensitive to the economic situation because a higher level of economic activity means goods need to move around the country, and the world." He added that strong economic conditions "further reinforce the positive investment case" for investors seeking alternatives to AI-related stocks. Furthermore, the transportation industry is considered "AI-resistant," and investors are increasingly favoring companies whose core functions cannot be easily replicated by AI technology.

For the software sector, which has long been shadowed by fears of AI obsolescence, Byron Deeter, a partner at the prominent investment firm Bessemer Venture Partners, believes the severe sell-off in global software stocks, particularly U.S. ones, presents a rare "buying-the-dip" opportunity. He declared that software and SaaS-related sectors are "absolutely in deeply oversold territory." Despite another sharp decline in software stocks this week, Deeter contends that the market chaos is creating favorable profit conditions for savvy investors. He also warned, however, that there will be "significant divergence" among software companies based on their growth prospects and fundamental outlooks, rather than a uniform, market-wide rebound.