AI stocks have taken a hit recently and a lot of people are wondering if it is time to get out. History might have the answer.
Past tech cycles show that only the strongest firms survive a sectorwide shakeout. The dot com boom gave us Amazon and Google but left behind countless companies that disappeared.
The old rule is to only hold the number one or two players in any niche. The rest are risky when things get tough.
Another thing to consider is that AI is now eating into traditional software models by offering similar tools at a fraction of the cost. If AI can replace a company's core product, a recovery becomes much harder.
So maybe hold the leaders but be careful with the rest. Anyone else rethinking their AI holdings right now?
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