Different Baskets, Same Truck

AI is spreading far beyond technology stocks, and that may be changing what diversification really means.

Key Takeaways

• One AI-linked factor now drives a large share of the risk in America's biggest listed companies.
• Owning many companies is not the same as owning things that behave differently.
• Assets with their own drivers, like gold, can offer genuine diversification.

For most of us, artificial intelligence still feels like something that lives on a screen. You open ChatGPT, ask it a question and get an answer. But behind that simple interaction are specialised chips, huge data centres, cooling systems and enormous amounts of electricity. That is why AI is becoming much more than a technology story.

Recent research from SimCorp's Axioma team found that one common factor linked to the AI build-out was responsible for around 42% of the risk in the Russell 1000, an index representing America's largest listed companies, as of 24 July 2026.

So what does that actually mean?

Imagine You Own Four Businesses

Say you own a pizza shop. To diversify, you also buy part of a cheese supplier, a flour company and a food delivery business. On paper, you now own four different companies.

But perhaps there is another question worth asking: are all your baskets sitting in the same truck?

Different Baskets, Same Truck

Most of us know the basic rule of diversification: don't put all your eggs in one basket.

The scale of the AI build-out is hard to overstate, with roughly US$700 billion in a single year flowing through the wider AI build-out. A company doesn't need to make AI software to be heavily exposed to AI spending.

Owning technology, utilities and industrial companies may look diversified. But if they are all benefiting from the same AI spending cycle, they may be more connected than they appear.

That doesn't make them bad investments. It simply means a portfolio may be more concentrated than it looks.

The lesson isn't to avoid AI. It is to look beyond company names and ask what is actually driving your investments.

Where Gold Fits

That is where assets driven by different forces can become useful. Gold, for example, doesn't need Nvidia to sell another chip or another data centre to be built. It has different investment drivers.

True diversification isn't simply owning more things. It's owning things that behave differently for different reasons. Physical gold and silver, whether held directly through Ainslie Bullion or in tokenised form through Gold Silver Standard, sit outside the AI spending cycle entirely.

As AI's influence spreads through markets, investors should ask one simple question: are my baskets actually separate, or are they all riding in the same truck?

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions.