Investors use dotcom era playbook to dodge AI bubble risks

Major investors, spooked by AI exuberance yet wary of betting against it, are shifting from hyped-up stocks into potential next-in-line winners, reviving a strategy from the 1990s dotcom era that helped some sidestep the crash.

As U.S. stocks have hit successive records and AI chipmaker Nvidia’s valuation has surged beyond $4 trillion, professional investors have been trying to find ways to make money from the bull market while avoiding excessive risk.

Some are looking back to the 1990s internet boom, which spread from startups to telecoms and tech,…