VanEck, the investment management firm, is telling clients to rethink their portfolios. The company suggests moving away from bets on artificial intelligence winners and instead putting money into real assets and infrastructure. It warns that the top AI stocks are too volatile to count on.
Why the pivot now
The firm's call comes as AI-related equities have seen wild swings. Some stocks doubled in months, then gave back gains just as fast. VanEck argues that picking the long-term winners in AI is a risky game. The sector is crowded, and leadership can change quickly. That makes it hard for investors to hold on through the turbulence.
Instead, VanEck points to real assets — things like commodities, real estate, and infrastructure projects. These tend to be less volatile and offer a hedge against inflation. Infrastructure, in particular, has a steady demand story. Governments and companies are spending heavily on roads, bridges, energy grids, and data centers. That spending isn't going away, even if AI hype fades.
What counts as real assets
Real assets are physical or tangible investments. They include land, buildings, natural resources, and infrastructure. Unlike stocks or bonds, their value comes from their use, not from market sentiment. VanEck highlights that these assets often provide income through rents, tolls, or royalties. They also tend to hold up better when growth stocks stumble.
The firm's recommendation isn't a full exit from tech. It's a tilt. VanEck still sees opportunity in AI, but wants investors to be selective and keep a core allocation in real assets. The idea is to balance the portfolio, not to bet everything on one trend.
The volatility warning
VanEck's warning about AI sector winners is blunt. The firm says that even the companies leading the AI race today could lose their edge tomorrow. New competitors, regulatory changes, or shifts in technology can upend the market. That kind of risk is hard to manage in a concentrated portfolio.
For everyday investors, the message is clear: don't chase the hottest AI names without a plan. VanEck suggests that real assets and infrastructure offer a more predictable path. They won't double overnight, but they're less likely to crash, either.
The firm's advice lands at a time when many are questioning whether AI stocks have run too far. The next few months will show if investors take the hint and rebalance toward the tangible.
