For what feels like the first time in months, the hottest trade in the market might not be an AI stock. Shares of Toll Brothers Inc (NYSE: TOL), the luxury homebuilder, closed last week around $148, up about 20% since its earnings report in the back half of May. For context, over the same period, the S&P 500 is roughly flat, while some of the AI darlings that had been leading the market higher, like NVIDIA Corp (NASDAQ: NVDA), have shed more than 10%.
That's a stark divergence, and it comes after weeks of seemingly relentless gains across the AI and chip space. Investors appear to be taking profits on the year's most crowded trades and rotating into traditional names that have been left behind.
