Defensive Stocks To Watch As AI Turbulence Pushes Investors Toward Steadier Returns

AI infrastructure and semiconductor stocks have been under heavy selling pressure after Situational Awareness, Leopold Aschenbrenner’s hedge fund, began unwinding leveraged trades and facing margin calls. Forced liquidations in both public and private AI holdings are rippling through the market, which can quickly shift attention back to companies with steadier balance sheets, reliable dividends, and calmer price moves. This article looks at 3 stocks from a Defensive Value Stocks screener that appear more insulated from this AI-driven volatility. It also outlines where these stocks might fit in a portfolio and where caution could still be sensible.

Dole (DOLE)

Overview: Dole is a global fresh produce company that sources, grows, ships, and markets bananas, pineapples, plantains and a wide range of other fruits and vegetables to retailers, wholesalers, foodservice customers, and e commerce channels under the DOLE brand.

Operations: Dole generates about US$3.7b from Fresh Fruit and US$5.9b from Diversified Fresh Produce across EMEA and the Americas & ROW, with a small intersegment reduction of US$0.1b.

Market Cap: US$1.4b

For defensive investors looking beyond the AI sell off, Dole offers a mix of everyday consumer demand, a global footprint in fresh produce, and exposure to steady cash generation. The stock is priced at a modest P/E and analysts see material upside in their price targets, yet you still need to weigh this against thin profit margins, weather and commodity risks, and a balance sheet funded entirely by external borrowings. Recent deals in the Nordics and the sale of a non core port asset suggest a clearer focus on higher quality earnings and capital discipline. The key consideration is how all of this fits together for long term, lower volatility returns.

Dole’s everyday cash generation story can look simple on the surface, yet thin margins and a fully debt funded balance sheet make the real trade off less obvious. Before you judge the risk reward, take a moment to scan the 4 key rewards and 1 important warning sign

A.G. BARR (LSE:BAG)

Overview: A.G. BARR is a long established UK drinks company that manufactures and distributes soft drinks, cocktail mixers and oat based beverages, selling brands such as IRN BRU, Rubicon, Bundaberg and MOMA across supermarkets, convenience stores, hospitality and other retail channels in the UK and abroad.

Operations: A.G. BARR generates most of its revenue from Soft Drinks at about £382m, with smaller contributions from Cocktail Solutions at roughly £35.8m and Other activities at around £19.5m, and the bulk of its sales coming from the UK at about £418.8m.

Market Cap: £728.0m

For investors seeking shelter from AI driven volatility, A.G. BARR offers something very different to high growth tech stocks. The company sits in a mature, everyday consumption category where demand for soft drinks and mixers tends to be steady, and recent figures show revenue and earnings growth that has outpaced the wider UK beverage industry. A medium P/E, improving profit margins and an approved dividend with a yield near 2.85% all suggest a balanced mix of income and potential capital growth, although the dividend is not fully covered by free cash flow and the business relies entirely on external borrowing. The key question is how that trade off between dependable brands, growth and balance sheet risk stacks up for long term holders.

Revenue and earnings at A.G. BARR are quietly decoupling from typical soft drink stocks, with dependable brands masking a more complex trade off between growth and debt. For a detailed breakdown, see the 3 key rewards and 1 important warning sign

Telecom Plus (LSE:TEP)

Overview: Telecom Plus provides UK households with bundled essential services under the Utility Warehouse and TML brands, reselling gas, electricity, broadband, mobile and fixed line telephony, plus insurance and cashback cards on a single monthly bill. The company positions itself as a one stop provider that rewards customers for taking multiple services, which can deepen relationships and support recurring revenue.

Operations: Telecom Plus generates about £1.9b from non regulated utility services, with all revenue currently coming from the United Kingdom.

Market Cap: £673.6m

Telecom Plus stands out in this Defensive Value Stocks screener because it combines a multi utility model with recurring household demand and a focus on efficiency gains, including AI tools to control admin costs and support margins. Earnings and revenue for the year to 31 March 2026 sit at £80.67m and £1,941.06m respectively, while the stock trades on a P/E around 8.4x. Analysts have a consensus price target that is over 20% above the current share price. The reset in dividends and expected pressure on margins, alongside a relatively high debt load and volatile share price, mean the income story is more complex than it first appears, especially for investors seeking long term stability.

Telecom Plus sits at the crossroads of recurring household demand and a P/E around 8.4x. Yet the real story sits inside the 4 key rewards and 4 important warning signs (1 is major!)

The three stocks covered here are only a starting point. The full Defensive Value Stocks screener surfaces 18 more companies that pair solid balance sheets, dividend histories and lower volatility with equally compelling narratives through the Defensive Value Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, risk flags and business stories that matter most to you so you can focus on the defensive value ideas that best fit your own conviction.

Take Control of Your Investment Journey

If Telecom Plus or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before They Fly

Markets move fast and the best entry points do not wait. Scan curated stock ideas building quiet momentum under the radar for now, before the crowd catches up. Consider identifying opportunities early.

• Spot companies with sturdy finances and use the list of solid balance sheet and fundamentals (48 results) to focus on those where cash generation and funding strength sit at the core.
• Explore income opportunities by scanning the 9 dividend fortresses and concentrate on companies that combine higher yields with balance sheets built to handle tough conditions.
• Review future-facing growth themes through the 56 AI infrastructure stocks and examine businesses supplying the critical picks and shovels behind expanding AI demand.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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