Hundreds of billions of dollars pouring into AI are intensifying warnings that the boom could turn into a bust and hit portfolios more broadly than many investors realize.
S&P 500 holders are part of that exposure because major indexes already carry significant AI-linked weight, making passive investors vulnerable if the sector reverses.
The latest investor focus has shifted from chasing AI gains to limiting concentration risk through diversification and other defensive positioning.
Those concerns build on earlier wealth-protection advice favoring assets such as Treasurys, gold, cash buffers and selective non-AI holdings over panic selling.