<div id="readability-page-1">Cameron Dawson, chief investment officer at NewEdge Wealth, dropped a statistic on Thoughtful Money with Adam Taggart that should reframe how investors think about diversification in 2026. &#34;10 years ago, the semiconductor index or weight in the S&amp;P 500 was 2%. Today it's 18%,&#34; she said, adding that &#34;that 18% is more than double what it was at the p...</div>

.SPX

<p>Cameron Dawson, CIO at NewEdge Wealth, highlighted that semiconductor exposure in the S&P 500 has surged to 18%, more than double the tech bubble peak of 2%. This shift, driven by major players like NVIDIA, Micron, and Taiwan Semiconductor, indicates a significant concentration in AI-related investments, complicating traditional diversification strategies. Investors may find it challenging to diversify effectively as semiconductors dominate allocation decisions across various indices.</p>

- Cameron Dawson, chief investment officer at NewEdge Wealth, highlighted the significant increase in the semiconductor sector's influence, rising from 2% to 18% in the S&P 500 over the past decade.  
- This shift suggests that traditional diversification strategies may need to be reevaluated for 2026, as reliance on specific sectors could increase investment risk.  
- Dawson's insights encourage investors to reconsider their approach to portfolio diversification in response to changing market dynamics.

Micron Tech

Taiwan Semiconductor

S&P 500

T-Rex 2X Long NVIDIA Daily Target ETF

VanEck Semiconductor ETF

First Trust Nasdaq Food & Semicon

Direxion Daily NVDA Bull 2X Shares

iShares Semiconductor ETF

GraniteShares 2x Long NVDA Daily ETF

Direxion Semicon Bull 3X

SPDR S&P 500

SPDR S&P Semicon

Invesco PHLX Semiconductor ETF

YieldMax NVDA Option Income Strategy ETF

Invesco Semiconductors ETF

Semiconductor exposure in S&P 500 hits 18%. That’s more than double the tech bubble peak.