<div id="readability-page-1">AI giants dominate: Ten mega-cap tech firms, many tied to AI, now make up roughly 40% of the S&amp;P 500's value, with most other stocks lagging. Leverage at extremes: Margin debt has hit a record $1.304 trillion, up 53% in a year, amplifying both potential gains and potential losses. Downturn triggers: Overvaluation, concentrated leadership, and geopolitical shocks could quickly unravel the rally, forcing widespread liquidations.</div>

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<p>The AI-led rally is at risk due to record margin debt of $1.304 trillion, a 53% increase in a year, which heightens both gains and losses. Ten major tech firms dominate 40% of the S&P 500's value, while other stocks lag. Potential downturns could arise from overvaluation, concentrated leadership, and geopolitical shocks, leading to possible liquidations.</p>

- Ten major tech firms associated with AI account for about 40% of the S&P 500's total value.  
- Margin debt has reached a record $1.304 trillion, rising 53% in a year, which increases both potential gains and risks.  
- Factors such as overvaluation, concentrated market leadership, and geopolitical tensions could jeopardize the current rally, leading to significant sell-offs.

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AI-led rally faces risks from record margin debt, narrow gains