Investor Dan Niles, founder of Niles Investment Management, has suggested that investors should diversify their investments in artificial intelligence (AI) while also adding exposure to names unlikely to be disrupted by the technology. Niles believes that the AI trade is at an inflection point with more people starting to deploy useful products. He recommends "heavy asset, low obsolescence" stocks, which are seen as less vulnerable to AI disruption, as well as "already oversold". Niles also highlighted that while software stocks are rallying, it's best to avoid them, he warns against underestimating the value of software companies.