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AI-related stocks constitute a significant portion of major indices like the S&P 500, with a handful of tech giants making up about 37%. To mitigate risk, actively manage your portfolio rather than relying solely on broad ETFs. Incorporate defensive sectors such as healthcare and utilities to buffer against potential downturns.
Diversify Globally
Expanding investments beyond domestic markets—especially in Asia, including South Korea and Taiwan—is vital. These regions host key players in the semiconductor and AI hardware supply chain, providing exposure to growth areas less saturated with hype.