The market reaction to warnings about slowing frontier AI has reached Wall Street, with Nasdaq 100 futures down 1.72% and major semiconductor stocks falling sharply in premarket trading.
Nvidia fell more than 2%.
AMD dropped around 5%.
Intel and Marvell fell nearly 6%.
Meta and Amazon were also lower.
The moves follow mounting calls from AI executives and policymakers to consider slowing frontier capability development while safety catches up.
Other pressures are also hitting markets, including oil prices, inflation and expectations for Federal Reserve policy.
THE OTHER SIDE OF THE AI TRADE
Some software companies moved in the opposite direction.
ServiceNow gained around 3%, while Adobe and Workday rose approximately 2.5% each.
Those companies have previously been under pressure from expectations that increasingly capable AI could disrupt traditional software businesses.
The split is revealing.
Companies supplying the infrastructure for rapid AI expansion are falling.
Some companies threatened by that expansion are rising.
Trillions of dollars have flowed into companies positioned for increasingly powerful AI.
The safety debate is now forcing markets to confront a different possibility.
What happens to those valuations if frontier AI actually slows down?
Sources
Reuters: AI warnings hit Nasdaq futures and U.S. technology stocks
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