With valuations sky high for artificial intelligence stocks, investors may want to start thinking of a backup plan, according to Trivariate Research founder Adam Parker.
The plan includes making a list of diversified stock ideas outside of AI, particularly because the S&P 500 is heavily weighted in tech and AI-related names.
“Our quality-adjusted AI factor now has its highest correlation ever to the S&P500,” Parker wrote in a note Sunday. “It isn’t hyperbolic to say that the S&P500 is an AI factor bet.”
Stocks remain near record highs thanks, in large part, to enthusiasm around artificial intelligence. On Monday, the S&P 500 climbed 1.2% in midday trading, following a tumultuous week that still ended with the index in the green.
Source: https://www.cnbc.com/2025/10/20/your-ai-back-up-plan-use-these-stocks-to-diversify-your-portfolio.html