Retail investors aren't entirely giving up on AI trade, but they appear more cautious

POLAND - 2025/02/24: In this photo illustration, an Artificial Intelligence (AI) logo is displayed on a smartphone with an Artificial Intelligence (AI) symbols on the background. (Photo Illustration by Omar Marques/SOPA Images/LightRocket via Getty Images)Sopa Images | Lightrocket | Getty ImagesRetail investors aren't giving up on the artificial intelligence trade. But they are getting selective and adding downside protection as markets head into the fall.Investors are using put options and inverse ETFs to hedge risk while still positioning for upside in individual technology stocks, according to data from Vanda Research and Charles Schwab. Put options give the holder the right to sell an asset at a stated price by a certain date. Inverse ETFs aim to move in the opposite direction from the index they're following."Retail investors are selectively trading in the classic AI theme but also adding downside protection via options and inverse ETFs," Vanda's global equity strategist Kaidi Meng told CNBC in an emailed statement.Retail flows look very different now compared with prior years, Meng said. "Previously, retail bought any major dips almost without question. However, this year, we...