Commentary
While it’s tempting to keep riding the wave, investors would be wise to diversify their portfolios, says Jonathan Levin for Bloomberg Opinion.
A screen displays trading of the S&P 500 Index at the New York Stock Exchange (NYSE) in New York City, Jan 2, 2026. REUTERS/Jeenah Moon
04 Jun 2026 05:58AM
MIAMI: The latest earnings season is drawing to a close, and it’s revealed how the artificial intelligence boom is engulfing more and more of the S&P 500 Index. The profits are pouring in, yet the US is increasingly a single-narrative market - one where stocks will swoon together when the music stops playing.The overwhelming majority of sectors is growing swiftly, thanks not only to the fortunes of advanced chip designers and hyperscalers but also less sexy memory companies including Sandisk, which went from a US$5 billion capitalisation last year to one of the world’s 100 most valuable firms.Then, there are the real estate, industrials and materials companies doing the hard work of erecting new town-sized data centres. And don’t forget the bankers, making great money executing all these deals. (The forthcoming crop of AI mega-IPOs sure won’t hurt.)The stock market and large parts of the real economy have, in essence, hitched their wagons to a single thematic that can turn on a dime. Investors who have owned the S&P 500 for a long time may be surprised by the size of their AI exposure.
