Wallstreetcn analysis indicates that after years of AI and momentum trading dominating the market, "quality factor" investment strategies, centered on high-quality earnings, are regaining recognition on Wall Street. Data from Goldman Sachs' trading desk shows that its industry and factor-neutral quality pair index (GSP1QUAL) has risen 20% over the past three months, reaching a 12-month high. A long quality, short momentum hedge portfolio has gained 55% year-to-date in 2026. The analysis suggests that a high-interest-rate macro environment and downward revisions in earnings growth expectations are key drivers. The quality factor exhibits negative correlation with AI and momentum, offering structural hedge value.