Is the AI Boom a Bubble? These 2 Dividend Stocks Say No

Key Points

• Valuations in the AI sector remain high, but historical patterns suggest a bubble is unlikely to burst while caution prevails.
• Black Hills Corp. is positioned to benefit from AI-related energy demands through its utility footprint in rural data center boomtowns.
• Nutrien offers a defensive AI hedge, with stable demand driven by global agriculture and minimal AI sector exposure.

As 2025 winds down, tech investors are facing a familiar mix of excitement and anxiety. With AI stock valuations at historic highs, the question heading into 2026 is no longer whether AI is transformative—but whether the market has gotten ahead of itself.

Recent news also contributed to some market unease—Oracle NYSE: ORCL reportedly lost a key funding partner, a move that briefly rattled investor sentiment. Still, Lichtenfeld emphasized that the market’s reaction was limited and far from a collapse: “It’s not like the markets are tanking and crashing. It’s just down today a bit on the news.”

Marc Lichtenfeld of The Oxford Group says the concern is understandable, but warns investors not to jump to conclusions too quickly. “Typically, bubbles don’t burst when everybody is talking about the possibility of the bubble bursting,” he explains. “When the bubble bursts is when everybody thinks it’s only going to go up forever.” That’s not the mood in the market right now.

Lichtenfeld, a long-time dividend investor and author of Get Rich with Dividends, has found that focusing on companies with strong cash flow and rising payouts offers a way to ride the trend—or hedge against it. He recently shared his updated list of top dividend stocks for 2026, featuring picks tailored for both bullish and defensive investors.

In his latest analysis, Lichtenfeld spotlighted two under-the-radar dividend stocks—one that benefits directly from AI’s growing infrastructure demands, and one that could thrive even if the tech trade falters.

Black Hills Corp.: A Utility Stock Charging the AI Boom

One of Lichtenfeld’s favorite ways to play the AI trend is Black Hills Corp. NYSE: BKH, a South Dakota-based utility that’s deeply embedded in the regions now becoming AI infrastructure hubs.

“Cheyenne and other parts of Wyoming are becoming boomtowns for data centers because land and electricity are cheap,” he says. With power-hungry AI applications rapidly expanding, the utility providers in these rural areas are in the right place at the right time.

What makes BKH even more compelling, Lichtenfeld explains, is that the company was already projecting 5% to 7% annual earnings growth before the data center expansion. Now, with growing demand from high-profile customers like Microsoft NASDAQ: MSFT and Meta Platforms NASDAQ: META, there's potential for even stronger upside.

Black Hills is also in the process of acquiring NorthWestern Energy NYSE: NWE, which will bring in 800,000 additional customers and expand its utility footprint.

Though traditionally seen as defensive, Lichtenfeld believes this is a growth story in disguise. “It’s kind of a rare bird—a utility stock with upside.” BKH also brings a long-term dividend track record, raising its payout every year since 1971 and currently yielding about 3.8%.

Nutrien: A Defensive Play Built Outside the AI Hype

For those skeptical about the AI boom—or simply looking to diversify—Lichtenfeld turns to Nutrien Ltd. NYSE: NTR, one of the world’s largest potash producers.

“Regardless of what’s happening in AI, people have to eat,” he says. “And to grow more food, you need fertilizer.” That simple logic underpins his bullish view on Nutrien, a company that holds roughly 20% of global market share and has weathered commodity cycles with consistency.

He also sees the stock’s lack of tech exposure as a feature, not a flaw. “If you’re looking for an investment that’s really outside the scope of AI in case there is a bubble crash, this is one of those plays.”

While Wall Street remains tepid on the name—roughly half of analysts rate it a hold or sell—Lichtenfeld sees that skepticism as opportunity. “I prefer stocks that Wall Street analysts don’t like because they’re often late to the party. When those upgrades finally come, they can really push the stock higher.”

With a dividend yield of 3.5%, a forward P/E of 13, and trading at just 7x cash flow, Nutrien is priced like a bargain. And even if AI technologies ultimately improve farming efficiency, Lichtenfeld sees that as a win too. “If farmers can increase their crop yields using AI, that only boosts demand for what Nutrien sells.”

What About Palantir and NVIDIA?

Naturally, the AI titans still dominate headlines. Lichtenfeld flagged Palantir NASDAQ: PLTR and NVIDIA NASDAQ: NVDA as prime examples of the sector’s elevated multiples—with PLTR trading at 250x earnings and 225x cash flow, and NVDA at 55x.

While those numbers raise eyebrows, he cautions against overreacting. “Bubbles don’t burst because of high valuations. When they do burst, those valuations make it worse. But people don’t usually sell stocks just because they’re expensive—very often, they keep buying them.”

Focus on Dividends, Regardless of the Narrative

No matter which side of the AI debate you fall on, Lichtenfeld returns to a familiar anchor: income. “Even if the market drops 10%, a 5% or 6% dividend yield softens the blow,” he says. “And in a strong market, that dividend adds to your total return.”

By focusing on companies that consistently grow their payouts, he believes investors can weather volatility, outpace inflation, and unlock the long-term power of compounding.