Wealthy Investors Turn Cautious, Trim Tech Exposure Amid AI Rally

Rising geopolitical risks, persistent inflation and uncertainty over how long interest rates will remain elevated have intensified swings across global markets. Taiwan’s domestic banks say wealthy clients are shifting from aggressively chasing gains toward protecting capital and managing volatility. The change is significant after the artificial-intelligence boom lifted technology shares and increased concentration risk in portfolios, prompting investors to reassess whether further upside justifies current valuations.

In their latest assessment, banks advised high-net-worth clients to take some profits on technology holdings while enthusiasm for AI remains strong. They recommended reallocating part of the proceeds to balanced funds and principal-protected structured products to strengthen portfolio resilience during volatile markets. The report did not identify individual lenders or disclose a survey date, client asset totals, transaction amounts or recommended allocation percentages, limiting the scope for measuring how broadly the shift has taken hold.