Billions of dollars are moving out of AI-linked stocks and into insurers, small-cap companies and other sectors that had attracted limited institutional interest. Non-tech US equity funds received $62 billion in inflows over five weeks in early 2026, surpassing their combined inflows for all of 2025. Hedge funds have been deleveraging US technology positions at what has been described as a record pace, with net selling recorded in six of eight weeks around mid-2026 and sector exposure down roughly 10% since early June. Since June 22, selected software stocks have gained about $1.5 trillion, while semiconductor companies have lost around $2.6 trillion, creating a $4.1 trillion relative-value swing within technology. Insurance stocks reached record highs in late July 2026 as investors sought predictable cash flows and limited exposure to the AI disruption narrative. The Russell 2000 small-cap index gained 6% in early 2026, outperforming technology benchmarks as investors responded to more attractive valuations and domestic interest-rate expectations. The shift has also introduced HALO, or Heavy Assets, Low Obsolescence, to Wall Street's vocabulary. The label covers utilities, insurers, industrials and other businesses whose core products are less likely to be replaced by large language models. Small-caps are also benefiting from possible rate cuts and historically wide valuation discounts relative to large-cap stocks. Insurance and small-cap valuations could continue to rise if the rotation persists, while insurers' earnings growth has been supported by hard-market pricing dynamics rather than AI enthusiasm.