3 Defensive Non Tech Stocks Investors May Prefer As AI Spending Cools

With chip makers under pressure and enthusiasm for AI spending cooling, many investors are taking a fresh look at stocks that sit well away from the hottest technology themes. Defensive non tech stocks in areas like consumer staples, utilities and healthcare can behave differently when markets start to question growth stories tied to AI. This article walks through three stocks from a Defensive Non Tech Stocks screener that appear directly exposed to the latest news on chip demand and AI budgets. You will see how the same headlines that unsettle AI leaders can affect these companies in different ways.

Australian Clinical Labs (ASX:ACL)

Overview: Australian Clinical Labs is a healthcare company that runs pathology laboratories and collection centres across Australia, providing blood tests, cancer and genetic screening, antenatal checks, cardiac testing, and commercial drug and alcohol testing for doctors, patients and corporate clients.

Operations: Australian Clinical Labs generates all of its A$737.9m in revenue from pathology and clinical laboratory services in Australia.

Market Cap: A$450.8m

Australian Clinical Labs sits in the defensive healthcare camp that many investors are rotating toward as enthusiasm for AI hardware cools. It still has its own internal catalysts. The company is rolling out automation, AI tools and digital billing to reduce labour intensity and improve cash collection, while expanding into higher margin genetic and oncology tests that tap into longer term trends in chronic disease and personalised medicine. At the same time, earnings have weakened, dividend cover looks stretched and the business faces regulatory and competition pressure, so the story is not risk free. With a new CEO and fresh board appointments through 2026, investors watching ACL now are early in a potential reshaping of how this pathology group runs and earns.

Australian Clinical Labs could be quietly reshaping its earnings profile, as automation and higher margin tests build in the background while stretched dividend cover and regulation sit in the foreground. Get the full story in the 3 key rewards and 1 important warning sign

Employers Holdings (EIG)

Overview: Employers Holdings is a Reno based insurer that provides workers' compensation cover for small businesses in low to medium hazard industries across the United States, selling its policies through a mix of agents, trade groups and direct channels.

Operations: Employers Holdings generates US$863.7m in revenue from insurance operations in the United States.

Market Cap: US$905.9m

Employers Holdings offers investors pure exposure to workers' compensation for smaller businesses, which can appeal when markets rotate into traditional insurers and away from AI heavy growth stories. The company is working through pressures on policy volumes and margins as automation and gig work reshape employment patterns, and earnings have shown declines and low net margins recently. At the same time, it has high quality reserves, rising policy counts, disciplined cost control and an active capital return program that includes dividends and a sizeable buyback authorization. Recent board and executive hires with deep insurance backgrounds add another layer for investors tracking how Employers Holdings might balance shrinking premium pools with tighter underwriting, technology driven efficiency and more focused use of capital.

Employers Holdings appears to be a workers' compensation specialist where disciplined underwriting and capital returns may be obscuring a larger story about earnings quality and reserve strength. The next step is to see what the 2 key rewards and 2 important warning signs quietly reveals.

U.S. Physical Therapy (USPH)

Overview: U.S. Physical Therapy operates and manages outpatient physical therapy clinics across the United States, treating orthopedic and sports injuries, supporting recovery after surgery, and helping injured workers return to work. It also runs an industrial injury prevention business that provides onsite injury prevention, testing, ergonomic assessments, and performance programs for large employers including Fortune 500 companies and insurers.

Operations: U.S. Physical Therapy generates about US$670.2m in revenue from Physical Therapy Operations and US$117.5m from Industrial Injury Prevention Services, all in the United States.

Market Cap: US$1.2b

U.S. Physical Therapy sits squarely in the defensive healthcare camp, offering clinic based care and employer injury prevention services that do not rely on AI chip spending cycles. Analysts expect earnings to grow much faster than revenue, which suggests the real story is about improving margins as clinic efficiency, acquisitions and hospital alliances gradually reshape the business. At the same time, current net margins are thin, the dividend is not fully covered by earnings, and returns on capital have softened, so this is not a simple income stock. With the stock trading below some fair value estimates and recent acquisitions expanding its footprint to 45 states, investors watching U.S. Physical Therapy now are seeing a healthcare platform partway through a profitability reset rather than a finished product.

U.S. Physical Therapy appears to be a quietly improving margin story, with clinic efficiency and acquisitions contributing more than many investors may realize. Get the full picture in the analyst forecasts for U.S. Physical Therapy

The three stocks covered here are only a starting point, with the full Defensive Non-Tech Stocks screener surfacing 21 more companies that share the same defensive, non tech profile and have equally compelling stories behind their cash flows and dividends. Use Simply Wall St to identify, filter and analyze the specific catalysts and narratives that matter most to you so you can focus on the highest conviction ideas in this corner of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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