AI Stocks Drop After Anthropic CEO Warns About AI Risks
AI stocks faced significant declines in premarket trading on Monday following a lengthy essay by Anthropic CEO Dario Amodei, which raised concerns about the risks associated with rapid advancements in artificial intelligence. The warning led to sharp drops for major players like Marvell (MRVL), SK Hynix (SKHY), Micron (MU), and Super Micro (SMCI), all down around 6%, while CoreWeave (CRWV) and AMD also fell more than 4%. Even top AI firms Nvidia (NVDA) and Broadcom (AVGO) saw declines of over 3%. Amodei argued that progress in AI capabilities must be slowed to allow risk prevention measures time to catch up. OpenAI CEO Sam Altman echoed the sentiment, warning about potential dystopian outcomes if power becomes too concentrated or misaligned with human interests. Analysts noted while this isn't a call for halting model training, it has raised investor concerns over future demand and AI development pacing. Bernstein analyst Madison Rezaei highlighted that CoreWeave is particularly vulnerable to any slowdown in AI training due to its reliance on power contracts in Tier 3 and Tier 4 markets. The market reaction reflects growing unease about the long-term implications of unchecked AI progress.
Tickers: $AMD $AVGO $CRWV $MRVL $MU $NVDA $SKHYV $SMCI $SNDK
Topics: AI CEO_statement semiconductors stock_market