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e're taking a closer look at First American Financial Corporation (NYSE:FAF) in the context of non-tech AI opportunities amidst the DeepSeek selloff. Investors are seeking safer ways to capitalize on the AI boom beyond traditional tech stocks, with Goldman Sachs highlighting sectors like utilities, industrials, retail, and healthcare as key beneficiaries of AI-driven productivity gains.

    The bank's chief US equity strategist, David Kostin, outlines four phases of the AI boom. The first two phases focus on NVIDIA and AI chipmakers, as well as AI infrastructure companies, which have significantly outperformed market benchmarks in 2024. The third phase involves companies integrating AI into their products to drive revenue growth, while the fourth phase includes businesses that will realize long-term productivity gains from AI adoption.

    The industrial sector is a prime example of this trend, with stocks gaining nearly 30% since early 2023 and AI-exposed firms more than doubling in value. Goldman Sachs anticipates these trends will continue, with downstream AI stocks eventually rallying as their AI-driven efficiencies translate into earnings growth.

    As the US tech market experiences a selloff following the popularity of Chinese AI startup DeepSeek, investors are turning to non-tech AI opportunities that hold explosive growth potential. According to Goldman Sachs, the rise of AI-driven data centers is fueling a massive increase in electricity demand, with power needs expected to grow by over 160% by 2030. Nuclear energy will play a critical role in meeting this demand, but it won't be the sole solution – natural gas, renewables, and battery storage will also be essential.