2 Industrial Stocks That Win Whether the AI Bubble Pops or Not

Artificial intelligence (AI) is all the rage on Wall Street, leaving more mundane "real-world" businesses in its high-tech shadow. But investors ignore boring businesses at their own peril today, amid growing concerns that AI has turned into a bubble that could soon burst. Even if it does, the packages that United Parcel Service (NYSE: UPS) delivers will still need to be delivered. And the rare-earth metals that MP Materials (NYSE: MP) mines and processes will still be in high demand. Both are worth a second look if you are ready to put money to work in an area other than AI.

1. UPS is living up to its promises

United Parcel Service, commonly known as UPS, is an industrial turnaround story. Over time, the company's operations got a bit unwieldy, and it found itself operating in too many low-margin businesses. It decided to take a proactive approach, slimming down and investing in technology and infrastructure to improve its operations. At the same time, it moved to exit less desirable businesses and reduce exposure to low-margin customers.

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Think about that for a second, and you'll see the problem. UPS was spending on its business at the same exact time it was reducing revenues. The last few years of earnings reports have been pretty ugly reading. But the second half of 2026 was billed as the inflection point. And it looks like management is living up to that promise, with third-quarter 2026 revenues up 6.7% year over year. In fact, UPS even increased its full-year guidance for revenues, earnings, and free cash flow.

To be fair, there's still more work to be done. But UPS' progress is notable, and the bursting of the AI bubble isn't likely to derail it. Delivering packages may benefit from using AI, but AI isn't the main driver of the business. And while you wait for more progress on the turnaround, you can collect the stock's well-above-market 6% yield. And, if that lofty yield has you worried about a cut, even a 50% reduction would still leave you with a large income stream.

2. MP Materials serves a vital purpose

MP Materials is building a rare-earth metals business that operates in an economically and politically stable region. And that business is starting to ramp up, with production from the company's new mine feeding into its processing facilities. In the second quarter of 2026, the company's revenues grew nearly 90%.

The key to the story here, however, is China, which is the dominant global player in the rare-earth metals space. China has proven it is willing to use access to these vital materials as a global geopolitical bargaining chip. So companies around the world are looking for alternative suppliers. MP Materials aims to be one of those suppliers. While rare-earth metals are most certainly used in AI, they are practically ubiquitous in high-tech products from cellphones to cars to missile defense systems. If the AI bubble bursts, it likely won't derail demand for rare-earth metals. And it certainly won't change the industry's supply dynamics.

MP Materials is a high-risk investment; It's probably only appropriate for more aggressive types willing to buy start-ups. Still, if you are worried about an AI bubble, MP Materials has way more going for it than just that one technology's growth.

AI is exciting, but boring is also good

There's no question that artificial intelligence is an exciting technology. And it may change the world, too. But Wall Street often gets ahead of itself, so a repeat of the dot-com bubble is a very real risk. But that won't change the boring package delivery business or UPS' increasingly successful turnaround efforts. And demand for rare-earth metals from suppliers other than China isn't going to change, either. That makes MP Materials' business well positioned for growth, even if the AI bubble bursts.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MP Materials and United Parcel Service. The Motley Fool has a disclosure policy.