There have been head fakes before, but this time may be different as the latest stock rotation out of AI is just getting started, analysts say

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...