By Lewis Krauskopf

NEW YORK (Reuters) -Optimism over the profit potential of artificial intelligence has helped drive the U.S. stock market to record highs, but investors are looking for weak spots that could emerge in the AI trade and have identified some risks to watch for.

AI has been the dominant theme on Wall Street since the launch of ChatGPT in November 2022, which fueled enthusiasm about the technology’s potential. Citigroup strategists estimate that nearly 50% of the S&P 500’s overall roughly $57 trillion in market capitalization has “high” or “medium” exposure to AI.

The benchmark index is up about 13% year-to-date, while the tech-heavy Nasdaq Composite has climbed 17%.

“So much of what is holding up the markets is either directly or indirectly related to that trade,” said Yu

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