Tech stocks, including Nvidia, are soaring, but concerns about an AI bubble persist. The Global X AI & Tech ETF has lost $2.4 trillion since October. A Bank of America survey reveals 45% see AI as a market risk. Experts disagree on whether we’re in a bubble, but advise diversifying portfolios.

Some analysts argue today’s AI market is stable, with real profitability and cash funding investments. Others see an AI bubble fueled by low interest rates. Experts recommend considering both scenarios, diversifying investments, and reassessing risk tolerance. UBS suggests international exposure, high-grade bonds, and gold for portfolio protection. UBS advises investors to diversify beyond US equities, highlighting three opportunities: China’s tech sector with potential for growth, quality bonds as a hedge against economic uncertainty, and gold as a portfolio diversifier, especially amidst political and economic risks. The recent sell-off in gold is seen as a healthy consolidation.

Read more at Yahoo Finance: Are we in an AI bubble? How to protect your portfolio if your AI investments turn against you.