Major technology stocks tied to artificial intelligence experienced sharp declines, with Palantir plunging over 9% after short seller Andrew Left renewed his bearish stance. Oracle fell nearly 6% amid aggressive AI investments and cloud-division layoffs. Chipmakers Advanced Micro Devices, Arm Holdings, and Nvidia slid between roughly 3.5% and 5.4%. SoftBank dropped more than 7%. OpenAI CEO Sam Altman acknowledged that AI is in a bubble. A report from MIT found about 95% of generative AI pilot programs produced little to no measurable impact on revenue or profits, citing stalled corporate efforts, flawed enterprise integrations, and learning gaps across hundreds of deployments and interviews. The sell-off reflects valuation skepticism but not the disappearance of the underlying technology.
Major technology stocks tied to artificial intelligence took a sharp downward turn Tuesday, rattling markets and raising concerns the sector's billion-dollar promises may not be bearing fruit as quickly as hoped. Shares of Palantir Technologies, the data-analytics firm widely viewed as an AI bellwether, plunged more than 9%, its worst tumble since March, after prominent short seller Andrew Left of Citron Research renewed his bearish stance.
Behind the market jitters, a recent report from MIT said approximately 95% of company generative AI pilot programs resulted in "little to no measurable impact" on revenue or profits. While a handful of startups have thrived, the vast majority of corporate efforts have stalled, caught in flawed enterprise integrations and learning gaps. The research, encompassing 150 executive interviews, 350 employee surveys, and an analysis of 300 public AI deployments, paints a sobering picture:
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