Tech stocks like Nvidia have reported strong earnings, leading to record returns related to artificial intelligence. However, concerns about a possible AI bubble persist, with the Global X AI & Technology ETF losing $2.4 trillion in value. A Bank of America survey shows 45% of respondents see AI equities as the biggest market risk.

Experts are divided on whether an AI bubble is imminent. BlackRock’s Carolyn Barnette believes today’s AI investments are different from the dot-com era, citing strong profitability and disciplined capital allocation. However, Apollo Global Management’s Torsten Sløk warns of an AI bubble fueled by zero interest rates.

To protect your portfolio from potential AI bubble risks, consider diversifying investments and identifying AI adopters rather than creators. Schwab’s Kevin Gordon suggests revisiting investment time horizons and risk tolerance. UBS recommends international exposure, high-grade bonds, and gold for portfolio protection amidst uncertainty. UBS recommends diversifying portfolios beyond US equities, citing three appealing opportunities. They suggest investing in China’s tech sector and Japanese equities, quality bonds, and gold. The firm believes China’s tech sector has potential due to Beijing’s push for innovation, quality bonds could rally during economic uncertainties, and gold remains a hedge against risks.

Read more at Yahoo Finance: How to protect your portfolio if you’re worried about an AI bubble