Think AI is a Bubble Waiting to Burst? 3 Relatively Safe Stocks You Can Buy

Parkev Tatevosian, CFA•Sep 6, 2026

Summary

Parkev presents a thesis for investors seeking refuge from the volatility and potential bubble of the artificial intelligence sector. Parkev emphasizes that if the AI trend falters, capital may rotate into established, non-AI businesses that offer stability and tangible value. Parkev identifies these as 'relatively safe' alternatives for the current market environment.

Netflix: Parkev views this as a 'top 10' holding with a fair value of $127 and a predicted 57% upside from its current price of $81. Parkev notes that Netflix acts as an anti-AI play because if AI-generated video fails to disrupt consumption, Netflix stands to regain focused attention. Despite risks like the rise of short-form content and poor sentiment following rumors about Warner Brothers, Parkev highlights Netflix's mastery of content production and the ongoing shift from cable to streaming.

PepsiCo: Parkev identifies PepsiCo as an undervalued defensive play with a fair value estimate of $177, representing a 27% upside from the current $140 level. Parkev praises the company's proprietary experience in global logistics and marketing, which serves as a significant barrier to entry. While macro headwinds and health trends are current obstacles, Parkev believes PepsiCo's infrastructure can eventually adapt to healthier product offerings.

McDonald's: Parkev includes McDonald's in the 'top 10' picks, calculating a fair value of $330 per share compared to its current $262 price, offering a 26% upside. Parkev highlights the company's high operating margins, which approach 50%, and the integration of technology like automated kiosks and robotics to lower labor costs. Although health trends and macroeconomic pressures are concerns, Parkev argues that McDonald's remains the value leader in the fast-food industry.

Mentioned Stocks

NFLX

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev considers Netflix a top holding and calculates a fair value of $127, implying a 57% upside from the current $81 price. Parkev describes the stock as an 'anti-AI' investment because a failure in the AI-video sector would remove potential competition for consumer attention. While Parkev acknowledges risks from short-form content like TikTok, Parkev emphasizes that the shift from cable to streaming continues to provide significant tailwinds.

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MCD

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev lists McDonald's as a favorite stock with a fair value estimate of $330, suggesting a 26% upside from the current price of $262. Parkev points to technological innovations like robotics, food delivery integration, and automated kiosks as key drivers for future margin expansion. Parkev notes that McDonald's operating margins are nearly 50%, which Parkev compares favorably to high-margin software companies like Apple.

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PEP

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev identifies PepsiCo as an undervalued, safe investment with a fair value of $177 and an expected upside of 27% from the $140 market price. Parkev argues that the company's decades of experience in global logistics, production, and marketing create a moat that is difficult for competitors to replicate. Despite current challenges from macroeconomic headwinds and health-conscious consumer trends, Parkev believes PepsiCo can successfully pivot its portfolio over time.

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