AI Stocks Crash: Nvidia, Micron, Intel, SoftBank Shares Fall As Anthropic CEO Calls For Slower AI Development

The global AI trade faced fresh selling pressure after Anthropic chief executive Dario Amodei urged the industry to take a more measured approach to the development of advanced artificial intelligence models. His comments prompted investors to reassess whether the pace of AI development and related infrastructure spending can continue at the level currently reflected in technology valuations.

AI Stocks Crash: Nvidia, Micron, Intel, SK Hynix, SoftBank Shares Fall

The reaction spread across the AI supply chain, hitting semiconductor companies, memory-chip makers, data-centre operators, server manufacturers and power-infrastructure businesses. Investors are concerned that slower development of frontier AI models could eventually affect demand for high-end chips, cloud computing capacity and new data-centre infrastructure.

AI Stocks Fall As Anthropic CEO Calls For Slower Frontier Development

US-listed AI and semiconductor stocks came under pressure following Amodei's comments. Micron shares fell 7%, while Intel declined 6% and Nvidia dropped more than 3%. Amazon, which is investing heavily in artificial intelligence infrastructure and data centres, slipped more than 1%.

Hewlett Packard Enterprise was among the bigger decliners, falling around 10%. The move reflected concerns about demand for enterprise hardware as companies continue to evaluate the scale and timing of their AI-related investments.

The weakness extended beyond the US. South Korea's SK Hynix and Samsung Electronics fell more than 6% and 4%, respectively. Both companies are important suppliers of advanced memory products used in high-performance computing systems.

In Japan, SoftBank shares declined 10%, adding to the pressure on companies with significant exposure to the AI investment cycle. European technology and industrial stocks also weakened, with chip-equipment maker ASML falling more than 5% and Infineon losing more than 7%. Siemens Energy and Schneider Electric also came under pressure as investors considered the possible impact on future data-centre power and infrastructure demand.

The latest market reaction highlights how broad the AI investment theme has become. The rally is no longer concentrated in companies developing AI models or software.

The expansion of artificial intelligence has created demand for advanced processors, memory chips, servers, networking equipment, cooling systems, electricity and data-centre capacity. Companies operating in all these areas have benefited from expectations that AI-related capital spending will remain strong.

A slower pace of frontier-model development could therefore have a wider impact if technology companies reduce or delay investments in computing capacity. Investors are particularly sensitive to this possibility because many AI-related stocks have already risen on expectations of years of strong spending.

Dario Amodei Calls For More Measured AI Development

Amodei, who co-founded Anthropic and leads the company as CEO, said AI developers should reduce the speed at which they push the capabilities of their most advanced models.

His comments came amid an intensifying debate within the technology industry over the potential risks associated with increasingly powerful AI systems. Anthropic has positioned itself as a major player in frontier AI through its Claude family of models, putting Amodei's views under close scrutiny from investors and the broader technology sector.

The Anthropic CEO did not advocate stopping AI development altogether. Instead, his argument was that companies should approach the development of increasingly capable systems more carefully and allow greater attention to safety as capabilities advance.

That distinction is important for markets. A slower development cycle does not necessarily mean that companies will stop using AI or cancel infrastructure projects. However, it could affect the speed at which demand for the most advanced computing systems expands.

Sam Altman Agrees AI Companies Need To Pace Development

OpenAI CEO Sam Altman also supported the broader argument that AI companies need to manage the pace of frontier development more carefully. However, he clarified that this should not be interpreted as a call to stop progress.

Altman said AI development had been moving rapidly and would continue to do so, but argued that companies may need to slow down compared with the pace they could otherwise achieve. He also pointed to the costs associated with safety testing and monitoring as AI systems become more capable.

Elon Musk also publicly backed Amodei's position, adding further visibility to the discussion among leading figures in the technology industry.

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