How to get in on the AI rally without taking on major risk

Traders work on the floor at the New York Stock Exchange in New York, Wednesday, Dec. 10, 2025. Photo by Seth Wenig /AP

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Three years after the ChatGPT-fuelled AI craze swept across markets and sent tech stocks soaring, some investors are looking at whether they can still get in on the rally.

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Alim Dhanji, a certified financial planner at Assante Financial Management, is no stranger to young investors asking about how to start investing in AI stocks — and what the right exposure is.

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“It comes up pretty much in every client meeting,” he said.

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The tech sector has seen significant volatility recently, as speculation mounts on whether there’s an AI bubble percolating after a major rally. For young investors looking for a piece of the action, experts say with the right strategy, it’s possible to participate without risking it all.

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Dhanji said he usually begins with the basics — assessing his client’s risk profile and financial goals.

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“Not everyone can tolerate the risks of AI companies because they are more volatile,” Dhanji said.

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Investing in AI no longer has to mean owning shares of big-name tech companies. Nvidia, Meta Platforms and AMD, among others, have been seen as proxies for the AI sector in recent years, but they are not the only options. Companies across the board have now bet huge sums of money on AI and its productivity promises.

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If the client’s goals are long-term, such as retirement savings, then having some AI exposure in their portfolio can complement other asset classes, Dhanji said.

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The volatility of AI stocks makes them unsuitable for short-term financial goals. For example, if you’re saving money to start a business or buy a house, it’s better to keep AI stocks out of the mix.

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Another risk, he said, is that technology is evolving so quickly that what you own today may be outdated in a year’s time.

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“You have to be careful in terms of what you’re investing in,” Dhanji said.

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Most investors Ryan Lee hears from are aware of the volatility, but they want to buy in anyway.

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Lee, a certified financial planner and founder of Twain Financial, said picking individual AI stocks to invest in can be an “overly risky” move.

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He also said it’s important to keep in mind how those AI stocks fit in your long-term investment strategy.

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Certain index funds in your portfolio might already have exposure to AI companies — such as an exchange-traded fund that tracks the Nasdaq.

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“When you hold a diversified portfolio, you already have exposure,” he said.

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Lee said it’s difficult nowadays to ignore AI stocks.

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“There is AI in the future … and there is going to be growth,” Lee said. “But we just don’t know when that growth is going to happen or whether or not that growth is going to be higher than other industries.”

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Instead of picking individual stocks, some investors might look to AI-centric ETFs, but Dhanji warned against over-concentration.