2 Industrial Stocks That Win Whether the AI Bubble Pops or Not
United Parcel Service appears to have turned a corner, while MP Materials is growing quickly.
Despite the rising popularity of artificial intelligence (AI) on Wall Street, some traditional industries remain crucial. Two such businesses worth considering are United Parcel Service (UPS) and MP Materials. UPS, an industrial turnaround story, has been focusing on slimming down its operations and investing in technology to improve efficiency.
Even if AI were to experience a bubble burst, the company's package delivery service would still be in demand. Moreover, UPS has reported positive earnings growth in recent quarters and has increased its full-year guidance. Its well-above-market dividend yield of 6% adds to its appeal. On the other hand, MP Materials is building a rare-earth metals business in a politically stable region.
With China's dominance in this market, other countries are seeking alternative suppliers. MP Materials aims to be one of these suppliers, catering to industries like AI, automotive, and defense systems. While the AI bubble could affect demand for rare-earth metals, the industry's supply dynamics remain stable. Hence, MP Materials' business is well-positioned for growth, regardless of the AI bubble's outcome.
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