Old Economy Stocks Surge On AI-Fueled Earnings, Data Tailwinds

The old economy stocks, often considered stable and reliable, have been surging lately, driven by artificial intelligence (AI) and data tailwinds. These companies, traditionally seen as less prone to technological disruption, are leveraging AI to enhance operational efficiency and drive earnings growth. This article explores how 'old economy' stocks are capitalizing on AI and data to boost their performance.

AI is transforming 'old economy' sectors by enabling predictive maintenance, real-time monitoring, and data-driven decision-making. In the industrial sector, AI is reducing downtime and enhancing safety. For instance, GE Aerospace is using AI to improve aircraft engine performance and reduce maintenance costs. In the finance sector, AI is facilitating fraud detection, risk assessment, and personalized banking services. Mastercard, for example, is leveraging AI to enhance security and provide real-time insights to merchants. In the consumer goods sector, AI is enabling personalized marketing, supply chain optimization, and automated customer service. Procter & Gamble is using AI to improve product recommendations and streamline its supply chain.


Companies like DuPont (DD) and Emerson Electric (EMR) have seen significant earnings growth and stock performance due to their AI adoption. DuPont's AI-driven demand led to a 28% earnings jump, while Emerson's earnings surged 67%. These companies have outperformed the S&P 500, with DD up 6.5% and EMR up 18.9% in the past six months. This trend suggests that old economy companies embracing AI can drive earnings growth and stock performance.


While AI offers numerous benefits, old economy companies face primary challenges in adopting it, including high implementation costs, lack of expertise, and data silos. However, these hurdles can be addressed through strategic partnerships, upskilling employees, and leveraging cloud-based AI solutions.

In conclusion, AI and data tailwinds are driving earnings growth and stock performance for 'old economy' stocks. These companies are leveraging AI to enhance operational efficiency, improve customer experiences, and create new revenue streams. Despite the challenges, old economy companies are adapting to AI-driven changes by embracing data and automation. As AI continues to evolve, these companies are well-positioned to capitalize on its benefits and secure steady returns for investors.