The tech sector rightly gets a lot of attention. It really sprang to the fore over the past two years as artificial intelligence grabbed headlines, sending chipmaker stocks like Nvidia (NASDAQ:NVDA) and Broadcom (NASDAQ:AVGO) to the stratosphere.
In just the last year alone, NVDA shares have more than tripled while AVGO stock has doubled, both handily outperforming the broader technology sector by a wide margin.
That is the sort of growth investors seek for their portfolio, but concentrating your portfolio in one sector or in just a handful of stocks introduces significant concentration risk.
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