Growing concentration of AI-related stocks testing fund manager convictions

Companies tied to AI, including in Asia, account for a rising proportion of major investment indices, challenging diversification strategies. Chinese players are gaining ground on the US giants in the AI race, leading to greater stock volatility. Christopher Chu reports.

An aggressive capex outlook for computing infrastructure has been boosting valuations for equities linked to artificial intelligence (AI) this year, benefiting major benchmarks where the technology is well represented. However, losses have been mounting in some indices in recent weeks leading to worries over concentration risk. 

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