Jul 9, 2026 – 4.00pmAustralia’s lack of exposure to large artificial intelligence stocks is forcing fund managers to pile into a group of smaller so-called picks-and-shovels companies which have generated huge returns, but are also becoming increasingly overcrowded.ASX investors have long been envious of Wall Street’s outsized exposure to technology stocks at the forefront of the AI revolution from chipmakers Nvidia and Broadcom to the hyperscalers like Microsoft and Amazon. In contrast, Australia’s tech sector makes up just 2 per cent of the local bourse by weighting, and roughly half a per cent of the index’s earnings.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles