As fears of an AI bubble intensify, smart investors are turning to more stable non-tech opportunities with reliable cash flows and attractive valuations. For those looking to diversify away from foam, here are three stocks to consider.
1. Coca-Cola
Performance since the start of the year: +15%
Market capitalization: $308 billion
Coca-Cola (NYSE:) remains the ultimate consumer stronghold, trading at just 23 times forward earnings – below its 10-year average (27x) – with a reliable 2.89% dividend yield ($2.04 annual payout) backed by 55 consecutive years of increasing payouts.
Source: Investing.com
Coca-Cola’s recent financial performance demonstrates remarkable consistency and accelerated growth across key metrics that validate the company’s strategic transformation. Third-quarter 2025 organic revenue increased 7%, fueled by volume growth of 7% in emerging markets and price/mix gains of 5% in developed countries, with EPS beating estimates of 4%.
With zero exposure to AI investment cycles and over $10 billion in annual cash flow supporting buybacks and dividends, KO provides a reliable income stream, making it a perfect anchor for a portfolio seeking sanity beyond the AI frenzy.
Coca-Cola leads with an overall financial health score of 2.80 (“GOOD”), supported by a strong profit score of 4.15 and strong momentum. The average analyst price target stands at $79.13, 11% higher than today, while the highest target is $85.00.
2. AT&T
Performance since the start of the year: +10.6%
Market capitalization: $178.5 billion
AT&T (NYSE:), meanwhile, is the king of 5G cash flow, with a generous 4.4% yield, the highest among large-cap telecom companies. Free cash flow jumped to $4.8 billion in Q3 2025, up 18% year-over-year, enabling a $10 billion debt reduction this year alone, while broadband net additions reached +300,000, the best in a decade.
Yet the market continues to assign it a rock-bottom valuation, trading at a forward price-to-earnings ratio of 8.2x, a fraction of the S&P 500 average.
Source: Investing.com
While not as glamorous as an AI chip designer, AT&T’s recent operational improvements reflect management’s successful execution of strategic direction…
..
