AI-linked fears roil stocks after years of hype, gains
NBC News • • business
Key Points:
- Stocks recently surged due to optimism about artificial intelligence (AI), but investor concerns about excessive AI spending and its uncertain profit potential have caused volatility in AI-linked stocks like Visa, Mastercard, and IBM.
- A viral substack post by Citrini Research warned of a potential market crash, reduced consumer spending, and widespread layoffs by 2028 due to AI, intensifying fears and impacting payment companies and consulting firms.
- IBM experienced its worst single-day drop since 2000 after Anthropic announced AI tools that could disrupt IBM’s legacy business, while broader market indexes also declined sharply, led by financials and consumer discretionary sectors.
- Investors are rapidly withdrawing from sectors vulnerable to AI disruption, such as financial services and logistics, while favoring more stable
