2 Non AI-Related Stocks on My Shopping List

The Strait of Hormuz has been effectively closed for over two months now. This has pushed energy and many commodity prices much higher. Fertilizer prices have also surged due to this blockage. This almost guarantees inflation levels will continue to push higher in the months and quarters, absent a recession and a considerable amount of demand destruction.

Yet here we are at fresh highs for the indexes. The huge increases in AI-related spending are the main driver of the rally. The historically cyclical semiconductor industry now makes up a sixth of overall market capitalization. A huge chunk of this is due to Nvidia (NVDA) , whose market cap is now higher than the annual GDP of Germany, the largest economy in Europe.

Initial first-quarter GDP estimates came in at 2.0% last week, a bit lower than expectations. Spending related to AI accounted for roughly 70% of GDP growth last quarter.

Government spending, which bounced back following the longest government shutdown in U.S. history in Q4 contributed 0.6% of the 2% GDP growth. Not exactly a balanced economy. And first quarter GDP growth only included one month of the impacts from the latest conflict in the Middle East.

The Shiller PE ratio topped 41 last week. It has only been higher once in history, right at the tail end of the Internet Boom. The price-to-sales ratio of the Nasdaq is just under 6.4x. Before ChatGPT debuted in late 2022, it was nearly two full points lower.

What possibly could go wrong? A prudent investor, however, still has to put some money to work.

Here are a couple of names on my shopping list. I have owned both for a bit, but will add to these positions via covered call orders on any dips in the overall market.

Taking It in Stride

Shares of educational platform concern Stride, Inc. (LRN) are still slowly recovering from a big drop in Q4 that was triggered both by implementation issues and worries that AI was going to disrupt the entire SaaS space. The company reported inline Q1 results last week.

Stride management reiterated it projected between $490 million and $500 million in adjusted net income in FY 2026 (June). The stock has a market cap of just under $4 billion. The company has a solid balance sheet, a significant stock repurchase program and should produce just over $200 million of free cash flow in FY 2026.

A Small Biopharma With Promise

I am also ready to add to my stake in Vanda Pharmaceuticals (VNDA) . This small biopharma should move to profitability in 2028 and trades at approximately 1x estimated 2028 sales.

In February, the FDA approved Vanda’s Bysanti (milsaperidone) for the treatment of bipolar I disorder and schizophrenia. In addition, Vanda just launched a new FDA-approved product for motion sickness. This is the first new oral therapy for motion-induced vomiting prevention in over four decades.

Sales growth is expected to hit 20% this year and should accelerate to 30% in 2027. The company ended 2025 with just over $260 million of net cash and marketable securities on its balance sheet. The stock’s market cap is just north of $400 million.

At the time of publication, Jensen was long LRN and VNDA.