Global artificial intelligence stocks fell sharply on Monday after executives at some of the world’s leading AI companies urged caution over the rapid development of increasingly powerful systems.
The sell-off spread across major markets, with chipmakers and other companies tied to the AI boom bearing much of the pressure. The Philadelphia Semiconductor Index fell 5.2%, while Nvidia dropped 3%, AMD declined 4.5% and Micron lost 5.4%. Europe’s technology sector also fell, led by a 6% decline in ASML, while SoftBank dropped more than 10% in Asia.
The market reaction followed warnings from Anthropic CEO Dario Amodei, who called for AI companies to slow the pace of model development amid concerns over potential misuse. OpenAI CEO Sam Altman and xAI chief Elon Musk have also expressed support for greater caution around advanced AI.
Amodei warned that AI agents could become capable of causing significant disruption within the next year, while Altman has described the potential risk of human extinction from AI as serious. The warnings come as governments and lawmakers increasingly debate stronger safeguards for the technology.
Despite the concerns, investors remain divided over whether AI spending will actually slow. Major technology companies continue to commit huge sums to data centers, chips and AI infrastructure, while competition between U.S. and Chinese firms remains intense.
The latest market decline highlights growing uncertainty around the sustainability of the AI investment boom. With borrowing costs rising and companies relying increasingly on debt and complex financing to fund expansion, investors are becoming more sensitive to any signs that AI spending could lose momentum.
At the same time, political and regulatory pressure is increasing. U.S. lawmakers are considering measures requiring AI companies to address major risks, while Washington and Beijing are expected to hold discussions on AI safety. The debate could shape both the pace of technological development and the enormous investment flows that have helped drive global markets in recent years.
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