By Teresa Rivas

It's an AI world, and we're all just living in it. Not really, but it seems that way -- especially on Wall Street. Yet, the truth is that there are still stock plays that have nothing to do with artificial intelligence.

So try to forget that Big Tech is almost the only thing working, and that bad breadth has been a problem throughout this rally, which has been so heavily dependent on the Magnificent Seven.

But that's easier said than done when Big Tech is such a huge part of the S&P 500. It's just common sense that investors diversify their holdings if they want to actually outperform the index.

And diversifying, while always a smart thing, is even more now because of tech's incredible run. The questions about the AI trade -- who hasn't heard the bubble talk? -- are legitimate, particularly as hyperscalers keep pouring billions into AI research.

Bank of America's Savita Subramanian points out that history shows "capital intensive" companies like oil producers have traded at discounts to "innovators" or today's AI names.

"AI spenders have a combined capex/operating cash flow ratio equivalent to the US oil majors yet they trade near record multiples," the firm notes.

That leaves these companies vulnerable to selloffs if AI ultimately isn't as profitable as investors hope. At the same time, if AI eventually replaces white-collar workers, the main engine of U.S. economic growth -- consumer spending -- would plummet.

Luckily, there is life -- lots of it -- outside of tech.

BofA screened for non-AI stocks that had to meet three criteria: 1) a Buy rating from its analysts; 2) trading below the market multiple -- and at least 10% below their 52-week highs; and 3) positive three-month earnings per-share revisions.

A somewhat amazing 82 stocks fit the bill. BofA analysts narrowed the list to their 16 highest-conviction names.

In alphabetical order: Amcor, AT&T, BGC, Church & Dwight, Dollar General, Eversource Energy, Freeport-McMoRan, Henry Schein, J.B. Hunt Transport Services, KeyCorp, McCormick & Co., Oneok, Progressive Corp-Ohio, Regency Centers Corp, Viking Holdings, and Walt Disney Co.

Viking and Dollar General are also Barron's stock picks.

BofA analysts aren't the only ones on the lookout for non-tech stocks. So is Renaissance Macro's Jeff deGraaf.

"Energy is showing some early signs of life after months of lethargy," writes deGraaf, chairman and head of technical research. "The percentage of U.S. energy stocks above their 20-day moving average has turned higher and is leading all industry groups."

That, along with the group's strength in Europe and Asia, makes deGraaf think that the sector deserves more attention.

deGraaf notes that biotech and pharma are also improving, including strong technicals for the State Street SPDR S&P Biotech exchange-traded fund, bolstered by Amgen, Eli Lilly and Johnson & Johnson.

"Other large pharma names are flickering but have work ahead of them before we turn to them as leadership," he writes. "Healthcare appears to be broadening, and we are methodically adding initiating positions on relative breakouts."

Now, there's no denying that AI is the buzz right now. But that will change. Stay ahead of the game and go non-AI -- even ChatGPT would agree.

Write to Teresa Rivas at teresa.rivas@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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November 12, 2025 14:54 ET (19:54 GMT)

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