Where to invest $10,000 as AI-bubble fears mount, according to 8 Wall Street pros

Bubble or no bubble: No signs of trouble yet

Investing ideas: Mega-caps, utilities, and industrials

Curtis said he didn’t believe the market was in an AI bubble. The structural components holding up the AI trade look sound, he said, pointing to healthy balance sheets, strong cash flow, and large existing user bases at firms spending big on AI.

“Is there sufficient financing? Is there sufficient power? Will it get deployed as quickly? And those are all real things that we have to navigate as investors, but they’re not structural problems over the long run,” he said.

Curtis said he would split the $10,000 between two groups of investments.

The first group consists of nine of the largest mega-cap tech stocks — the Magnificent Seven, plus Oracle and Broadcom.

The second group consists of select companies from the rest of the S&P 500, particularly firms with a strong competitive advantage, a strong management team, and a strong profit outlook.

“There is real opportunity in the S&P 491 for stock pickers to buy stuff,” he said, adding that he would deploy more of the capital in this area, particularly in companies that can apply AI or support the AI infrastructure buildout. Sectors like utilities and industrials, in particular, are areas where he believes there are good opportunities.

Funds that offer exposure to these areas include the Roundhill Magnificent Seven ETF (MAGS), the Vanguard Utilities ETF, and the iShares US Industrials ETF (VIS).