A viral report about AIs impact on white-collar jobs sent the Dow Jones market into a tailspin.

In fact, many tech companies have been doing layoffs and the whole situation is pretty grim at the moment.

And it got us thinking.

What is a safe-haven amidst all these chaos?

In this week’s newsletter, we outlined why we think AEP, Constellation, PepsiCo, Kraft Heinz, and Chevron could be safe harbour from future storms.

Cheers,
InvestKaki Team 🤜🤛

Moving on, here are the news that shocked the world…

Paramount X Warner Bros $PSKY ( ▲ 20.84% ) $WBD ( ▼ 2.19% ): Warner Bros finally caved to Paramounts’ US$31 per share offer, as Netflix pulled out of the race for the company [Read More]

Warner Bros $WBD ( ▼ 2.19% ): Warner Bros is not doing well. Latest quarterly earnings reveal that revenue declined by 6% while it still declared losses for the quarter as linear TV subscriptions continue to slide [Read More]

AMC $AMC ( ▲ 1.75% ): AMC Entertainment narrowed its losses for the latest quarter, as revenue gains on the back of movies such as Moana 2 and Wicked [Read More]

Domino’s $DPZ ( ▲ 0.81% ): Domino’s Pizza revenue is up by 6.4%, driven by higher sales volume and franchise advertising, royalties and fees. [Read More]

Meta X AMD $META ( ▼ 1.34% ) $AMD ( ▼ 1.7% ): Another circular deal. Meta is investing $100 billion in AMD for a 10% stake to acquire 6 gigawatts of computing power [Read More]

Here are the news covering the Asia market…

SJ Semiconductor: Another AI stock IPO in China. SJ Semiconductor, an advanced chip packaging company is listing in the China's Shanghai Star Market to raise US$700 million [Read More]

UOB: UOB reported a lower net profit of SG$4.7 billion for 2025 compared to SG$6.0 billion in 2024, as it took pre-emptive general allowances [Read More]

OCBC: OCBC’s full-year 2025 earnings are down by 2%, as net interest income is down by 6%. However, non-interest income is up by 16% [Read More]

Seatrium: Seatrium’s 2025 earnings doubled to SG$324 million, driven by its oil & gas and offshore wind projects. Margins are also better due to better product mix and improved yard utilisation [Read More]

Centurion Accommodation REIT: Earnings exceeded expectations as its workers and student accommodation portfolio recorded higher financial occupancy [Read More]

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Are software stocks being threatened by AI?

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It was a 7,000 word research report from a Substack blog, Citrini Research warning about AI impact on jobs.

But then, it blew up and went viral.

So viral, that it made the Dow Jones drop by 800 points.

And investors quickly rotated into defensive sectors such as utilities, energy and consumer staples.

Here are the 5 U.S. defensive stocks that we think could benefit.

American Electric Power is a utility company generating and providing electricity to retail and wholesale customers in the United States.

Why we like this: Simple really. To us, defensive means several things, but most importantly, it’s the beta. AEP has a low beta of 0.62, which means that it is not heavily affected by the overall market. Furthermore, it has announced that it will expand its CAPEX spending to beyond US$72 billion for the next five years to provide more electricity to data centre clients. This provides both the defensive quality and also a catalyst from the booming AI industry.

Valuations are also attaractive, trading at price-to-earnings ratio of 20 times compared to its peers’ average of 28 times. And yes, dividend yield is at a healthy 2.9%.

Constellation Energy produces and sell energy products in the United States.

Why we like this: The first time we heard about Constellation was when it struck a nuclear plant power deal with Microsoft in 2024. Data centres were on the rise, and Trump came to power. And Trump liked nuclear energy. Constellation’s share price have actually declined by 10% since the beginning of the year, presenting an opportunity to enter.

The company is currently trading at quite a high PER of 50 times, but it is very plugged into the AI industry boom trend. And it also provides energy as a utility company.

According to SimplyWallSt, it is only slightly overvalued at 2.5% now.

PepsiCo manufactures and sells beverages and convenient foods. Its popular brand is of course, Pepsi.

Why we like this: Despite the slowdown in consumer sentiment and spending, PepsiCo represents the quintessential defensive stock. Beta is very low at 0.42, making it a recession-resistant stock. And its reputation is established globally. Recently, it has announced that it is cutting the prices of some of its products to take advantage of the K-shaped economy trend where lower-income households are looking for cheaper deals.

PepsiCo has a decent dividend yield of 3.4% and is deemed 38% undervalued according to SimplyWallSt’s Discounted Cash Flow valuation.

Kraft Heinz manufactures and markets food and beverage products in the U.S. and global markets. Its famous brand include Kraft Cheese.

Why we like this: Kraft Heinz has experienced a very bumpy ride since its merger in the mid 2010s. The brainchild of Warren Buffett, it has since been a blot on Buffett’s otherwise stellar investment career. Consumers are moving away from processed food and into healthy food. Talks were rife to break up the company again to unlock value.

However, the new appointment of Steve Cahillane as CEO, has reversed the course for the company. It is pivoting more towards the health category, and there might not be a need for a split. DCF valuation indicates that the company is 61% undervalued.

Chevron explores, extract, process and sells oil & gas products internationally. Recently, it has gotten attention for being the only O&G operator left in Venezuela, which the U.S. have gained rights to.

Why we like this: O&G companies are gaining more attention this year due to Trump’s policy in Venezuela. It stands to benefit massively there as it is the only O&G operator left after the exit of several big companies. It also has defensive qualities due to its long established track record in the industry. It is currently 50% undervalued.

Hope the above is fruitful for you all..

Cheers,
James Yeo