Artificial intelligence (AI) stocks have skyrocketed in recent years, but that has created a double-edged sword for the broader market.
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have surged by around 82% and 100%, respectively, over the last three years alone, thanks in large part to the AI boom. But major indexes are becoming increasingly dominated by mega-cap tech stocks, and that concentration increases risk.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The 10 largest stocks in the U.S. account for around 40% of the S&P 500, and most of those stocks are betting big on AI. Amazon, Alphabet, Microsoft, and Meta Platforms have spent a combined $303 billion on data centers just in the first half of 2026, a figure that has tripled over the last five years.
While these companies argue that demand for AI will deliver returns that justify the spending, there's no guarantee that these build-outs will pay off. If they don't, it could threaten the entire stock market. Here's what Warren Buffett suggests investors do.
#signal
The S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) have surged by around 82% and 100%, respectively, over the last three years alone, thanks in large part to the AI boom. But major indexes are becoming increasingly dominated by mega-cap tech stocks, and that concentration increases risk.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
The 10 largest stocks in the U.S. account for around 40% of the S&P 500, and most of those stocks are betting big on AI. Amazon, Alphabet, Microsoft, and Meta Platforms have spent a combined $303 billion on data centers just in the first half of 2026, a figure that has tripled over the last five years.
While these companies argue that demand for AI will deliver returns that justify the spending, there's no guarantee that these build-outs will pay off. If they don't, it could threaten the entire stock market. Here's what Warren Buffett suggests investors do.
#signal
10 days ago
