At the end of 2025, a pivotal question in the financial media revolved around the potential existence of an artificial intelligence (AI) bubble. Although discussion on this topic has diminished, the underlying concern remains unresolved. The true nature of this question—whether a bubble is forming or whether AI will continue its robust growth—may not become clear until either a market correction occurs or AI’s expansion persists for several more years.
In the meantime, investors are advised to consider strategies that can safeguard their portfolios against any market volatility related to the tech-driven AI industry. Historically, recent years have shown a notable similarity between the current AI surge and the infamous dot-com bubble of the early 2000s, prompting a need for caution.
Two industrial stocks emerge as potential hedges against this unpredictability.
3M Company: The Unsung Hero of Stability
Often termed “boring but important,” 3M (MMM), which manufactures a wide range of essential products from household items like Command Strips and duct tape to critical safety equipment, exemplifies a stable investment choice. Though the nature of its business might not draw the same excitement as flashy tech stocks, its reliance on everyday utility ensures a consistent demand for its diverse offerings.
Since February 2024, after experiencing a downturn, 3M’s stock has rebounded, climbing 96% back into the $120-$200 range that it has traversed since 2016. In 2025, the company broke a trend of declining revenues from 2022 to 2024, achieving a 1.5% revenue growth to $24.9 billion for the year. Its adjusted operating margin also improved by 200 basis points, reaching 23.4%. However, the company’s earnings per share (EPS) fell by 10% across the year. Nonetheless, a 9% jump in adjusted EPS in Q4 2025 signifies a possible turnaround ahead.
As 3M continues its recovery phase, it is positioned to deliver stable returns and should offer a substantial cushion against the volatility often associated with AI-focused investments.
Cameco Corporation: Powering Ahead with Uranium
Another robust option is Cameco (CCJ), the second-largest uranium producer globally. In 2025, Cameco accounted for 15% of the world’s uranium output, trailing only Kazakhstan’s state-run Kazatomprom. Central to Cameco’s success is the high quality of its mines, including McArthur River/Key Lake—the highest-grade uranium mine worldwide—and Cigar Lake. Both mines have substantial reserves and are projected to keep producing for years to come, with extraction costs significantly lower than the current market price of uranium.
Uranium has seen a price rise, especially amidst increasing interest in nuclear energy, with various governments aiming to enhance their nuclear capabilities. Notably, Cameco inked a $1.9 billion deal to supply India with uranium, cementing its pivotal role in the growing nuclear sector.
In 2025, Cameco’s revenue surged 11% from the previous year to $3.48 billion, while its adjusted EPS skyrocketed 114%. With a healthy net profit margin of 16.9% and a low debt-to-equity ratio of 0.14, Cameco is well-positioned for sustainable growth. As energy demands rise globally, particularly for nuclear power, Cameco stands as a strong candidate for investors seeking long-term stability.
In summary, while the discussions surrounding an AI bubble may quieten, strategies for portfolio protection remain essential. 3M and Cameco illustrate two distinct yet effective paths for investors looking to navigate potential downturns in the tech industry while maintaining solid investment foundations in the industrial sector.
