In this article, we will take a detailed look at the Top 10 Non-AI Stocks Redditors are Buying Ahead of Potential Bubble Burst.
US tech stocks are wavering as concerns over stretched valuations continue to weigh on market sentiment.
Tim Seymour, Seymour Asset Management CIO, said in a recent program on CNBC that markets remain worried about AI valuations and “circular investments” despite the strong quarterly results from Nvidia.
“I still think there’s a question about tech valuations, although Nvidia’s valuation doesn’t really bother me,” Seymour said. “If you’re looking at Meta and whatnot, I just think there’s this confluence of we still don’t know what we’re paying for and what it’s going to deliver now as opposed to out there. I still think there is some sense of concern around circular investments.”
Many leading analysts believe now is the time for investors to pile into stocks for long-term gains. John Stoltzfus, Oppenheimer chief investment strategist, said in a recent interview on CNBC that he prefers stocks that are being “thrown down like hot potatoes onto the floor” by traders who are looking for “any excuse” to sell. The analyst talked about the specific industries he’s looking to buy on the dip:
“We continue to like info, communication services, we like industrials, we like financials, and yes, we do like consumer discretionary,” Stoltzfus said. “We have been for a long time recommending cyclicals over defensives that’s worked out now for years as well as for this year itself.”
In the backdrop of increasing worries around a potential AI bubble burst, investors are on the lookout for non-AI and non-tech stocks to diversify their portfolios.
READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
Photo by Adam Nowakowski on Unsplash
For this article, we scoured the most popular investing communities on Reddit and picked 10 non-AI stocks that retail investors on the social platform said they like amid rising AI-related bubble fears. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Cal-Maine Foods Inc (NASDAQ:CALM)
Number of Hedge Fund Investors: 33
Fresh eggs producer Cal-Maine Foods Inc (NASDAQ:CALM) is one of the best long-term stocks to pile into, according to retail investors on Reddit. The company recently posted its latest quarterly results, which show about 17% year-over-year revenue growth and 34% profit gains. However, both merics missed Wall Street estimates. Cal-Maine Foods Inc (NASDAQ:CALM) bulls believe declining interest rates could help the stock in the future amid catalysts like high-end products and demand for cage-free and organic products.
Analysts believe the acquisition of Echo Lake Foods allowed Cal-Maine Foods to diversify beyond conventional eggs. The deal gave the company a prepared foods portfolio including pre-cooked omelets, egg patties, French toast, pancakes and waffles. The company is also positioned to benefit from a new trend where US states are moving toward mandatory cage-free systems.
Diamond Hill Small Cap Fund stated the following regarding Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q4 2024 investor letter:
“Other top Q4 contributors included Centrus Energy, Graham Corp and Cal-Maine Foods, Inc. (NASDAQ:CALM). Fresh egg producer Cal-Maine Foods has benefited from an avian flu outbreak, which has led to a significant supply disruption and driven egg prices to record highs, in turn raising Cal-Maine’s share price.”
9. Novo Nordisk A/S (NYSE:NVO)
Number of Hedge Fund Investors: 45
Novo Nordisk A/S (NYSE:NVO) has long been a favorite stock of Redditors, and its popularity recently increased on the social media platform as investors recommended it as a non-AI play.
However, many investors are now questioning the company’s fundamentals. Recently, the company cut its full-year guidance, citing lower-than-expected sales of Wegovy and Ozempic.
Some investors point to the lower P/E of the stock. However, a Redditor recently countered this argument during a discussion:
“About valuation, the current forward P/E is 13, but that number only looks cheap because earnings are at an unsustainably high margin peak (50 % EBIT). If you normalize margins to even 25-30 %, that forward P/E doubles instantly.”
Vltava Fund stated the following regarding Novo Nordisk A/S (NYSE:NVO) in its third quarter 2025 investor letter:
“Novo Nordisk A/S (NYSE:NVO) probably needs no long introduction. It is one of Europe’s largest companies and a global leader in the treatment of two major lifestyle diseases – diabetes and obesity. The company has grown historically through the development and production of insulin and has held a dominant share of the global market in that group of products for decades. In recent years, obesity treatment has become its key growth segment. Its best-known product is Wegovy, which has proven to be highly effective in weight reduction. A smaller part of the business consists of drugs for rare diseases, particularly in the areas of hemophilia and growth hormone therapy. Novo Nordisk has highly integrated production, from molecule development to fully automated filling lines for injection pens, and global distribution to more than 170 countries, with a focus on the United States, Europe, and a rapidly growing share in Asia. Its biggest competitor is Eli Lilly, and these two companies now effectively form a duopoly in modern treatment of diabetes and obesity. Barriers to entry into the industry are extremely high, due to long development times, regulation, and enormous investments in production and distribution.
We have been following Novo Nordisk through the entire existence of the Vltava Fund, which means for more than 21 years. We have never owned its shares, however, either because we found them too expensive or had other more attractive opportunities available to us. During 2023–2024, Novo Nordisk definitively joined the ranks of global leaders in a new era of medicine. The success of its Ozempic and Wegovy medications has shown that obesity treatment is not just a niche segment, but a huge growth opportunity with direct impact on the health of millions of people. Demand for these drugs far exceeded supply, and the company invested heavily in expanding production. The market began to appreciate that Novo Nordisk had moved beyond traditional diabetology and become synonymous with innovation and long-term growth in an additional market segment. This narrative was increasingly reflected in the share price. From DKK 400 in the autumn of 2022, the price gradually climbed to beyond DKK 1,000 in the summer of 2024, at which time the stock was trading at roughly 45 times this year’s expected earnings. This price implicitly included very optimistic assumptions about future profitability…” (Click here to read the full text)
8. QXO Inc (NYSE:QXO)
Number of Hedge Fund Investors: 65
QXO Inc (NYSE:QXO) is one of the best non-tech stocks to buy, according to Redditors. The company sells roofing solutions and building products. It’s up about 7% so far this year. KeyBanc Capital Markets recently said in a note that the building products distribution sector in the US could see a rebound amid declining interest rates. The firm gave an Overweight rating to QXO Inc (NYSE:QXO).
QXO can continue to thrive amid construction activity in the coming years because there’s a shortage of 7.2 million homes in the US, while the median housing age is about 40 years, with a growing need for renovation and repair solutions.
Patient Capital Opportunity Equity Strategy stated the following regarding QXO, Inc. (NYSE:QXO) in its second quarter 2025 investor letter:
“QXO, Inc. (NYSE:QXO) was the top contributor to performance during the quarter following the completion of its $11B acquisition of Beacon Roofing in April. This marks the first of what is expected to be a series of acquisitions, as the company pursues a roll-up strategy in the highly fragmented building products distribution industry. QXO is leveraging a proven playbook that its management team has successfully executed across other sectors. With a strong track record and investor confidence, the company benefits from the ability to raise capital on attractive terms, giving it a competitive edge vs peers. Furthermore, management has proven their price discipline walking away from a bidding war for GMS Inc., which was ultimately acquired by Home Depot. We view this disciplined approach as a testament to management’s long-term focus. Over the next decade, QXO is targeting more than $50B in annual revenue. We have high conviction in Brad Jacobs’ leadership and believe the company is well positioned to become a long term compounder.”
7. Waste Management Inc (NYSE:WM)
Number of Hedge Fund Investors: 75
Redditors believe any bubble burst or crash won’t significantly impact Waste Management Inc (NYSE:WM), one of the biggest garbage collection companies in the US. Baird analysts recently upgraded the stock to Outperform from Neutral, citing strong fundamentals. Waste Management Inc (NYSE:WM) shares are up 8% over the past year. Baird analyst David Manthey believes the company has strong FCF, among other secular catalysts.
Waste Management has about 18% of the total addressable market as of last year. It owns about 10% of landfills in the US. The company has diversified into recycling, healthcare waste, and renewable energy. Recycling accounted for about 7% of its total revenue last year. WM has seen a CAGR of 8.5% in revenue since 2020, higher than the sector median of 4%.
Parnassus Core Equity Fund stated the following regarding Waste Management, Inc. (NYSE:WM) in its Q1 2025 investor letter:
“Waste Management, Inc. (NYSE:WM), along with other consumer-facing service companies, benefited from investors fleeing risk as uncertainty gripped the markets. The stock is viewed as defensive because its core business is relatively unaffected by an economic slowdown and tariffs.”
6. Coca-Cola Co (NYSE:KO)
Number of Hedge Fund Investors: 84
With over six decades of dividend growth, Coca-Cola Co (NYSE:KO) remains one of the best defensive stocks to buy ahead of a potential AI bubble burst, according to Redditors. The company recently beat Q3 estimates and maintained its full-year guidance. TD Cowen analyst Robert Moskow said the results showed the company can achieve growth with earnings flexibility.
COKE shares are up 25% so far this year. Over the past decade, the company recorded about a 13% CAGR in revenue and managed to power through various downturns and concerns due to its solid core business.
5. Costco Wholesale Corp (NASDAQ:COST)
Number of Hedge Fund Investors: 91
Redditors believe Costco Wholesale Corp (NASDAQ:COST) remains one of the best non-AI stocks for long-term investors. Evercore ISI analyst Greg Melich said in a note last month that extended operating hours and selling GLP-1 drugs at its stores are expected to boost traffic for Costco Wholesale Corp (NASDAQ:COST). The analyst also thinks the company is positioned well for market share gains amid elevated inflation as Americans hunt for value.
However, COST shares have been underperforming amid growth and valuation concerns recently. With revenue growth of just 6% and earnings growth of about 10% over the past three years, COST’s P/E of 51 seems elevated, according to many analysts. To boost growth, Costco has an option to expand to low-profit areas, which could pressure its margins.
4. Eli Lilly And Co (NYSE:LLY)
Number of Hedge Funds Investors: 119
Eli Lilly And Co (NYSE:LLY) recently posted strong quarterly results amid robust growth from its diabetes and weight-loss products. With a diverse portfolio spanning oncology, immunology and neuroscience, Redditors believe the company can offset any potential weakness in GLP-1 drugs amid the US government’s push to lower prices.
The company recently achieved the $1 trillion market cap milestone. The stock is up 36% so far this year. LLY bulls believe it has more upside potential amid strong growth from weight-loss drugs and other treatments, including diabetes, Alzheimer’s, and cancer.
While the stock’s P/E ratio remains elevated, some analysts believe it deserves a premium due to strong revenue growth. Over the past 12 months, LLY saw about 45% revenue growth, higher than its peers.
Baron Health Care Fund stated the following regarding Eli Lilly and Company (NYSE:LLY) in its third quarter 2025 investor letter:
“Eli Lilly and Company (NYSE:LLY) is a global pharmaceutical company currently best known for its GLP-1 treatments for diabetes and obesity. Shares declined after Phase 3 data for Lilly’s oral orforglipron in obesity fell short of elevated investor expectations. Investors had anticipated roughly 13% to 14% placebo-adjusted weight loss, while the trial showed 11.5%. The stock was also pressured by broader regulatory uncertainty related to potential sector tariffs and drug pricing risks. We view these risks as manageable and believe Lilly is among the least exposed pharmaceutical companies to both. We continue to believe orforglipron will be an important treatment option, as physicians and patients are likely to value the convenience of a daily oral therapy. Long term, we expect the GLP-1 drug class to become the standard of care for diabetes and obesity, ultimately representing a $150 billion-plus market, and believe Lilly possesses the leading portfolio in this category. In our view, GLP-1 adoption remains in the early stages, and continued uptake should drive a near doubling of Lilly’s total revenues by 2030.”
3. Berkshire Hathaway Inc Class B (NYSE:BRK.B)
Number of Hedge Fund Investors: 133
Many Redditors believe Warren Buffett’s Berkshire Hathaway is one of the best ways to diversify your portfolio ahead of a potential AI bubble burst. Why? Berkshire Hathaway Inc Class B (NYSE:BRK.B) is exposed to a variety of businesses, including insurance, railroads, utilities and energy. With a cash stockpile of about $380 billion, the Oracle of Omaha’s empire is safe from any crash or market volatility. The stock is up 11% so far this year.
Berkshire’s latest portfolio and its new $4.3 billion stake in Alphabet show it is increasing its exposure to AI and open to new opportunities in the technology sector. However, the stock’s valuation remains elevated and a concern for many. The company’s latest results showed that insurance remains Berkshire’s biggest driver of revenue and operating income. Naturally, the company’s ability to generate investment alpha is shrinking due to its huge size.
2. UnitedHealth Group Inc (NYSE:UNH)
Number of Hedge Fund Investors: 159
UnitedHealth Group Inc (NYSE:UNH) is one of the best non-tech and non-AI stocks to buy according to Redditors. The stock is down 35% so far this year, but Redditors believe the insurance giant will rally in the long term. As of the end of the third quarter, Warren Buffett’s Berkshire Hathaway owns about 5 million shares of the company. Last month, UnitedHealth Group Inc (NYSE:UNH) reported better-than-expected quarterly results and raised its full-year earnings outlook.
UnitedHealth expects its margins to improve from 2026, and eyes the upper half of the 2% to 4% range by 2027. Analysts believe the company’s medical cost ratio is showing signs of peaking. The company plans to transition away from low-margin Medicare Advantage members, which could help its margins.
The London Company Income Equity Strategy stated the following regarding UnitedHealth Group Incorporated (NYSE:UNH) in its third quarter 2025 investor letter:
“Initiated: UnitedHealth Group Incorporated (NYSE:UNH) – UNH is the largest and most diversified health insurer in the U.S., anchored by two complementary platforms: UnitedHealthcare, which provides benefits to individuals and employers, and Optum, which offers healthcare services, data, and technology solutions. This integrated model gives UNH unmatched scale and insight into healthcare costs, enabling both efficiency and improved outcomes. Its vast provider networks, local dominance, and data-driven capabilities form durable competitive advantages and high barriers to entry. Long-term growth is supported by powerful demographics, as the aging U.S. population drives steady Medicare Advantage enrollment—a core UNH strength. While near-term elevated medical costs have pressured margins and weighed on the stock, we view these headwinds as temporary. UNH is already repricing future plans to reflect higher costs, supporting a gradual return to historical margin levels. With a recurring revenue base, diversified earnings, and financial strength, UNH offers attractive downside protection. At today’s valuation, we see a compelling opportunity to own a structural growth leader with resilient cash flows.”
1. Visa Inc (NYSE:V)
Number of Hedge Funds Investors: 167
Visa Inc (NYSE:V) is one of the best non-tech and non-AI stocks to buy, according to Redditors, amid the company’s near-dominance in the payments card services market. The company recently posted upbeat quarterly results and said it expects low double-digit revenue growth in fiscal 2026. Visa recorded double-digit gains in online and travel-related spending as consumers continue to spend despite macroeconomic worries.
The company’s management said in its latest earnings call that consumer spending remains resilient despite macroeconomic worries and Visa Inc (NYSE:V) expects similar trends in the next year.
“We are not economic forecasters, so we’re assuming the macroeconomic environment stays generally where it is today and consumer spending remains resilient. On key business drivers, we are assuming no material change from the Q4 2025 growth levels in 2026. On pricing, for 2026, we expect the benefits of new pricing to be similar in magnitude and timing as in 2025, with the majority going into effect in the back half.”
Read the full transcript here.
Sands Capital Select Growth Strategy stated the following regarding Visa Inc. (NYSE:V) in its second quarter 2025 investor letter:
Visa Inc. (NYSE:V) operates the world’s largest retail electronic payment network. Shares declined in June amid a broader selloff in card network stocks following stablecoin-related headlines. Unlike the market, we do not view stablecoin proliferation as a threat to card volumes; in fact, we believe it could expand the addressable market for card networks. While stablecoins may have utility in cross-border business-to business transactions, we think they are unlikely to disrupt consumer-to-merchant payments, where cards offer a compelling value proposition—rewards, liquidity, ubiquity, buyer protections, and trust. Moreover, card networks could enhance stablecoin adoption by providing the rules, protections, and services needed for broader, mainstream use.
While we acknowledge the potential of V to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than V and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
