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Jefferies’ Chris Wood says it’s time to diversify beyond AI. Where should investors look now?
Economic Times 1 hr ago·18 Oct 2026, 7:31 am
Jefferies’ Chris Wood is advising investors to move beyond the current hype surrounding artificial intelligence. He argues that while AI is a long-term theme, the sector is facing a slowdown in earnings growth and its stocks are trading at very high valuations. Wood suggests that the market may be overestimating the immediate returns from AI investment, creating a potential risk for concentrated portfolios.
To mitigate this risk, Wood recommends diversifying capital into other areas. His strategy focuses on Asian markets, particularly India and China, where he sees significant growth potential. He also suggests retaining some exposure to the semiconductor sector, which benefits from the broader tech cycle, while avoiding companies that are spending excessively on AI infrastructure.
For investors, this signals a shift in strategy. It is a reminder to balance high-growth tech bets with other opportunities. Keeping an eye on how Asian markets perform and the actual earnings reports from major tech firms will be crucial in determining if this shift offers a better risk-reward profile than a pure AI play.
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