How Much AI Can You Own and Still Sleep Soundly?
Last week, the bull market turned four. Since its 2022 low, the S&P 500 has more than doubled. The Philadelphia Semiconductor Index is up nearly 500%, and AI favorites like Nvidia(NASDAQ:NVDA) and Micron Technology(NASDAQ:MU) have each returned more than 1,800%.
Do the math. Put 5% of your portfolio into one of those stocks in 2022, let the rest match the S&P 500, and that one holding now makes up nearly a third of everything you own. Nobody complains while it climbs.
But the week also offered a taste of the other direction. Chip stocks fell for seven sessions in a row, and on Wednesday, the Nasdaq and S&P 500 had their worst day since July. With that much of your money in one stock, a week like that lands hard.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.