How Much AI Can You Own and Still Sleep Soundly?

The article advises investors on managing concentration risk in AI stocks. With major tech firms spending $800 billion on AI infrastructure this year and expected to spend $1.2 trillion by 2027, AI stocks like Nvidia and Micron have surged dramatically. However, the article warns that excessive concentration in single stocks can be risky, introducing the concept of a 'sleep number'—the maximum portfolio percentage in any one holding that allows an investor to sleep soundly. Investors should establish this threshold before needing it and rebalance when holdings exceed it.