AI Broke the Trucks: 3 Transports to Buy After the AI Panic

Many transportation stocks fell sharply after a little-known microcap company, best known for karaoke systems, had traders singing the blues. On Feb. 12, Algorhythm Holdings claimed its new SemiCab freight-optimization platform could slash empty miles. This would let shippers triple volumes without adding headcount.

Traders, who are already sensitive to concerns about AI disrupting employment in sectors like software and real estate, saw this news as part of a broader trend. That is, any business model that is asset-light and software-heavy could face significant disruption. Specific to logistics companies, the idea is that artificial intelligence (AI) agents can already, or will soon be able to, replicate planning and load-matching functions.

At that point, the high-speed trading platforms wasted no time in dumping the “transports,” as they’re frequently called. The SPDR S&P Transportation ETF NYSEARCA: XTN initially dropped about 7.7% on the news. However, a late-day rally on Feb. 13 cut the loss to just 2.4%. Several individual names were down much more. That’s where investors are likely to have an opportunity.

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Know How the Game Is Played

Retail investors often wonder why stocks swing wildly in pre-market and early trading. High-frequency trading algorithms react instantly to headlines. That is selling or buying first, asking questions later. By the time human traders assess whether the reaction was justified, the damage is done.

It’s also important to note that transportation stocks have been some of the best performers in the first month-and-a-half of 2026. Even after this event, the XTN is up more than 11% in 2026. The point for investors is that this became a target for traders looking for liquidity and opportunities for short selling.

However, understanding this pattern can help you spot opportunities when algorithmic overreactions create temporary mispricing of stocks. That’s a likely setup for these transportation stocks that may create a buying opportunity.

C.H. Robinson: AI Panic Creates a Pricing Window

C.H. Robinson Worldwide Inc. NASDAQ: CHRW initially dropped over 23% on the news. Even with a rally to close the week, CHRW stock finished the week down more than 10%. The third-party logistics provider is one of the world’s largest freight and logistics intermediaries, which made it a key target for sellers.

However, investors may have also targeted CHRW stock because of its forward price-to-earnings ratio of around 38x. That’s not expensive based on the company’s history, but it’s more than double that of the transportation composite of 17x. Nevertheless, C.H. Robinson has entrenched relationships with its enterprise customers and knows how to navigate the complex maze of global compliance.

Buying volume was more than double the average on Feb. 13. However, that was still significantly less than the selling volume the day before.

It’s also worth noting that the stock was trading in overbought territory in the days leading up to the sharp correction. Investors will want to see confirmation that the bulls are back in control, which could come if the stock can reclaim its 20-day simple moving average (SMA).

J.B. Hunt: Operating Leverage on the Next Freight Upturn

J.B. Hunt Transport Services Inc. NASDAQ: JBHT sold off with the rest of the group, dropping over 10% immediately after the announcement, but recovering to close the week with a loss of around 3.7%. And like CHRW, J.B. Hunt stock could have been seen as overbought.

Still, this looks like an example of a stock that got caught up in an indiscriminate sector selloff, rather than any specific bad news. J.B. Hunt is a diversified freight operator with exposure to intermodal, dedicated contract services, and brokerage, giving the company multiple ways to benefit as volumes and pricing recover.

That makes JBHT less about a single AI headline and more about where we are in the freight cycle. Freight demand has been in a late‑stage downturn, pressuring yields and margins, but that also means J.B. Hunt has significant operating leverage to any turn in industrial production and consumer goods flows.

However, volume was much lighter on JBHT stock on Feb. 13, and the stock is showing low volatility. Watching how the stock behaves around its 50‑day and 200‑day moving averages can help confirm whether institutional buyers are stepping back in after the shakeout.

Union Pacific: AI‑Resistant Rail Cash Flow

Union Pacific Corp. NYSE: UNP only dropped about 2% in the downdraft, but it’s now trading back in a range below the high it was making on Feb. 12. And on two different occasions on Feb. 13, a new high served as resistance. However, that may have pushed UNP stock back into more reasonable territory relative to its historical valuation ranges.

That said, Union Pacific has a business model that is likely to benefit from the AI buildout over time. That’s because new data centers will create the need for construction materials, energy, and finished goods to move along the company’s irreplaceable rail network.

UNP stock offers investors a way to play any industrial re‑acceleration with a solid dividend and disciplined capital‑return framework, rather than betting on which intermediary’s software stack survives the next disruption headline.

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