I've had a lot of clients ask recently how things are going down at the allotment. The answer? Brilliantly. We've had some great weather, and I'm enjoying a bumper crop – everything from rocket and cucumbers to beetroot and tomatoes. It's always satisfying when you get to enjoy the fruits (or veg) of your labour.

So what's the secret this year? Well, I've changed my approach slightly – experimenting with the no-dig method. For the uninitiated, this represents a significant gardening revolution. Instead of tilling the soil each season, you leave it undisturbed and add compost to the top. The idea is to protect the soil's structure and let nature take its course. It's lower effort, better for the ecosystem, and, if my veg is anything to go by, highly effective.

Markets can be a bit like that, too. Every now and then, a new idea or approach comes along and completely reshapes the landscape. Right now, that force is artificial intelligence (AI). And the poster child for this transformation is chipmaker Nvidia.

Riding the AI boom, Nvidia has become the largest company in the world, overtaking Apple and Microsoft to become the first business with a total stock market value of $4 trillion earlier this month. Our chart shows how Nvidia reached another milestone last week. Remarkably, it now accounts for 4.73%* of the MSCI All Country World Index (ACWI). That's a single stock outweighing the entire Japanese stock market, which comes in at 4.65%. Japan, for reference, is the world's third-largest economy.

For further context:

• The UK represents 3.28% of the index

• China: 2.97%

• Canada: 2.87%

• France and Germany combined contribute roughly the same as Nvidia alone

Just like at the allotment, planting something new can lead to explosive growth, sometimes even beyond expectations. But as any seasoned grower will tell you, too much of one thing isn't always a good idea. There are only so many courgettes you can eat.

Key takeaway

Which brings us to a key investment principle: balance. Just as variety in the garden protects against pests, disease and flavour fatigue – diversification in a portfolio helps manage concentration risk and smooths the ride when fortunes shift. Nvidia might be thriving today, but tomorrow's weather is never guaranteed – in markets or on the allotment.

*Source: Augur Infinity

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This article is provided for general information purposes only and should not be construed as personal financial advice to invest in any fund or product. These are the investment manager’s views at the time of writing and should not be construed as investment advice. The opinions expressed are correct at time of writing and may be subject to change. Capital is at risk. The value and income from investments can go down as well as up and are not guaranteed. An investor may get back significantly less than they invest. Past performance is not a reliable indicator of current or future performance and should not be the sole factor considered when selecting funds.