Want to diversify a bit away from the AI theme? Try Evercore ISI's 'negative beta' stocks

As economic and geopolitical uncertainties rise, concerns that the so-called artificial intelligence bubble could pop are also intensifying, prompting investors to seek out stocks that trade in the opposite direction of the overall market. Enter "negative beta" stocks.

Beta is a statistical figure that measures a stock's volatility against that of the S & P 500 or another broad market index. A stock with a negative beta moves in a manner that is inversely correlated with the overall market.

Evercore ISI has compiled a list of negative beta names, including Mondelez International and Exxon Mobil , which could potentially be good hedges against a market downturn. Bear market ahead?

The S & P 500 is up roughly 8% this year, but a global chip rout has intensified on Tuesday and is weighing on outperformers such as Micron and Applied Materials , making "negative beta" names look more attractive. On Tuesday, Micron shed nearly 11%, while Sandisk tumbled 13%, Intel fell 4% and Qualcomm dove 9%.

Applied Materials was down 8%. With tech under pressure, Nasdaq was last down 1.5%, while the S & P 500 shed almost 1%.

However, investors were buying more defensive stocks such as Walmart and Procter & Gamble . As a result, the Dow Jones Industrial Average , which began the day in the red, was up 0.2% in midday trading.

In addition to gauging the health of the AI trade, investors are watching developments in the Middle East closely and also are looking ahead to inflation data later this week, which could determine the direction of interest rates. Amid the pullback, here are a few negative beta stocks to consider that are well liked by Evercore ISI.

Mondelez International The snack name, which has a beta of -.09, could serve as a hedge against a potential slump in stocks, according to Evercore ISI. The owner of famous snack brands such as Oreo and Cadbury has refocused its strategy on serving households with smaller budgets after U.S. consumer sentiment tanked to new lows earlier this year — a decision that has boosted its stock.

Separately, the chocolate seller has also benefited from a plunge in cocoa prices. Shares of Mondelez International have risen nearly 11% in 2026.

Exxon Mobil The energy name offers another attractive option to hedge against a broader market correction, according to Evercore ISI. The stock has a beta of -.93, putting it at the top of Evercore ISI's list.

Exxon Mobil shares have notched double-digit gains since the start of this year, largely driven by oil price spikes linked to the outbreak of the Iran war on Feb. 28. Brent crude futures, or the international benchmark for oil prices, were trading north of $120 per barrel at the height of the conflict in late April.

But easing tensions have resulted in declining prices, with Brent settling at $77.90 a barrel on Monday. But Exxon is a disciplined producer able to weather the volatility.

Shares of Exxon have jumped nearly 15% in the year to date.