Artificial intelligence stocks have seen a strong rally this year, but recent losses have left investors looking for ways to protect their portfolios. Diversification strategies, such as equal-weighted funds and small- and mid-cap stocks, can help mitigate the risk of concentrated losses in AI-related stocks. Financials and healthcare sectors offer opportunities for sector diversification as well. Strategists advise against assuming that the AI trade will continue upward indefinitely, emphasizing the importance of managing exposures and staying diversified within the tech sector. Despite the potential for volatility, experts remain optimistic about the long-term prospects for AI investments.

Read more at Morningstar: Worried About an AI Crash? Here’s How to Diversify Your Portfolio