Sisi Chan

Investors quietly pile into a group of stocks for 2026 (it’s not tech)

An unexpected sector is seeing investor influx bypassing technology. According to sector model’s findings, healthcare stocks have begun to outperform technology since June 2025.

The big picture:

Healthcare momentum has several drivers—solid earnings, M&A activity, and eased regulatory concerns, predicting a potential underweight of investors in healthcare in 2026.

Having developed an analytical tool for stock and sector rankings, I have noticed an evident shift towards healthcare. This trend is further backed by data from an independent research firm.

Limelight Alpha Sector Ranking (December 27 2025)

Our large-cap stock sectors scores show a notable rise in healthcare stocks. Since summer 2025, these have surpassed technology sector performances.

Investors’ preference seems to lean away from the tech sector, considering the impact of ChatGPT’s 2022 launch. Nvidia and the technology sector’s S&P 500 give further context to this inclination.

Diversification isn’t a bad thing, and healthcare could be the sector to target in 2026

A shift from the current tech boom towards healthcare investments could minimize risks significantly.

Axiom:

As KKR suggests, the rise of data centers could hint at looming pauses in tech stock returns. This view resonates with the late 90’s internet boom and raises considerations about unused capacity.

Ranking data shows quiet shift toward healthcare

Our sector model collates scores from individual stocks and ranks them accordingly. While healthcare has had to grapple with regulatory scrutiny over drug prices and health insurance, the shift is still gradual and discernable.

Is it too late to buy healthcare stocks?

Based on my tracking of healthcare and its historical performance during the late-stage business cycles, it’s not too late to invest. Energy tends to outperform in this stage with rising GDP rates, suggesting that potential worries might emerge later in the year.

For now, interest in healthcare stocks is due mainly to

• Understanding of the sector performance.
• Historical data highlighting potential growth.
• Momentum in earnings and M&A activities.
• Easing regulatory concerns.
• Late-stage business cycle dynamics.

About the authors

Our team consists of seasoned financial analysts with deep expertise in market trends and sector analysis. We aim to provide data-backed perspectives for our readers, leveraging years of experience in the finance industry.