With market volatility brought forth by Warren Buffett’s second-quarter share sales, the unwinding of Japan’s Yen carry trade, and the underwhelming U.S. jobs number, investor nerves have really been put to the test. The trio of concerning headlines may paint a terrifying picture for the rest of the year and perhaps part of 2025 when it comes to which stocks to buy.

Undoubtedly, recession fears returned rather quickly after taking a backseat to recent AI hype. While the artificial intelligence (AI) boom is still very much on the table, investors don’t seem nearly as enthused to buy shares of top AI companies as they were earlier this summer.

Many pundits view the fallen AI plays, some of which have been cut in half in a hurry, as great buying opportunities for those who aren’t so easily rattled. Of course, such battered AI stocks could continue to be the epicenter of market volatility as we approach one of the choppiest months of the year: September.

Dell Technologies (DELL)

Dell Technologies (NYSE:DELL) is one of the hot AI trades to shed more than 50% of its value in a matter of months. Though the recent 8% bounce-off lows have put an end to the brief “50% off” sale in the AI beneficiary, I still view DELL stock as a great place to look if you seek AI-driven growth at a reasonable price.

Unless you chased the stock’s hot 2024 run, you’re probably still sitting on a respectable gain. Over the past two years, DELL shares have still nearly doubled (97.25% gain) on the back of its standing in the AI boom.

Though Dell is laying off a great deal of its workforce to “simply” operations, the firm doesn’t appear to be slowing down on AI. The massive round of cuts seems largely AI-driven. With an AI-first strategy in place, Dell looks to be going full speed ahead on AI. And, perhaps most importantly, the firm’s plans may help it greatly improve its return on AI investments—something that could be key to further AI-related gains.

At just 18.9x trailing price-to-earnings (P/E) ratio, DELL stock screams bargain among stocks to buy, even as investors temper their AI expectations.

McDonald’s (MCD)

McDonald’s (NYSE:MCD) doesn’t seem like a “safe” place to hide anymore. Not with the stock coming off one of its most treacherous past 18 months of trading in recent memory.

Indeed, it’s been a roller-coaster ride for MCD stock, with shares falling into correction territory on three separate occasions in the last two years. Inflation headwinds and a faded perception of value through the eyes of consumers bear the blame for a lack of gains since December 2021.

Now that the market is backtracking, MCD stock seems to be waking up, with shares now up close to 10% from their July lows. Why the newfound momentum? Value is at the top of management’s mind.

As the legendary fast-food firm looks to follow up on the low-cost sensation that was the $5 meal deal while putting the finishing touches on its new burger, The Big Arch, I find MCD stock itself to be the greatest value of all while it’s going for just 23.5x trailing P/E ratio to go with a side of the 2.48%-yielding dividend.

Yum! Brands (YUM)

If you’re looking to steer clear of market volatility, the fast-food scene seems like a great bet right now. Like McDonald’s, Yum! Brands (NYSE:YUM) stock has been dragging its feet in recent years but could be ready for a breakout of sorts as value and menu deflation become the name of the game.

The company is behind such brands as Kentucky Fried Chicken (KFC), Taco Bell, and Pizza Hut. Three essential fast-food groups—fried chicken, tacos, and pizza—are covered with one name.

At writing, YUM stock is up close to 8% since its late-July lows. And while there’s a strong level of resistance at $140 per share, which almost seems unbreakable, I do see “value menu” sales catalysts that could help YUM stock make the long-awaited jump.

KFC, one of the tastiest brands in the Yum! portfolio, is expanding its $5 value meal. Whether this move helps it lure McDonald’s customers over remains the big question. Either way, the YUM looks like a great among stocks to buy at 25.1x trailing P/E if you fear more volatility in September.

On the date of publication, Joey Frenette held a long position in MCD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.