The implosion for AI stocks is only getting worse. And the losses harder to ignore due to their massive and ballooning size.
Shares of the nearly 70 U.S.-listed stocks in the Global X Artificial Intelligence & Technology ETF (AIQ) have shed a collective $1.8 trillion in value since Oct. 29, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge. That’s an important date — it’s when AI kingpin Nvidia (NVDA) saw its shares hit a closing high this year.
A $1.8 trillion loss in AI stocks as a group is noteworthy as it already exceeds the $1.5 trillion value of Meta Platforms (META). More than 70% of the AI stocks are down in that time frame. And AI stocks that are down are off an average of 11.6% — putting them squarely in correction territory.
Seeing such powerful selling in AI stocks is a headwind for the market, which has been propped up by these giant S&P 500 gains. “Sentiment surrounding AI last week became a headwind for markets, but the outlook surrounding AI seems to be more nuanced rather than an outright determinant as investors become more selective,” said Phil Blancato, president and CEO of Ladenburg Thalmann Asset Management.
Where Is The AI Pain In The S&P 500?
Not surprisingly, Nvidia stock is taking the hardest knocks from the AI sell-off. Shares are down nearly 10% from their closing high. That’s enough to erase $493 billion in market value. That’s more than 484 S&P 500 stocks, or 97% of the index members, are worth individually.
Nvidia’s stock chart offers some hope. Shares are just 1% over the pivot and carry a Relative Strength Rating of 85. Meanwhile, the Earnings Per Share Rating is a perfect 99. Analysts think the company’s EPS will rise 130% this year.
But Nvidia isn’t the only AI play falling apart. Shares of Meta Platforms are also getting hit hard. They’re down 19% from Oct. 29 — almost landing them in a bear market. That wipes out $362 billion in market value. That’s knocked Meta’s RS Rating down to 76. The EPS Rating is 96, although analysts think earnings per share will sink 2% this year.
On a percentage basis, AI player CoreWeave (CRWV) is down the most: 44%. Even Oracle (ORCL), a latecomer to the AI party is suffering for it. Shares are off 21% from Oct. 29, erasing $166 billion in value.
But just because AI stocks are already malfunctioning doesn’t guarantee they will immediately bounce back. And that lack of a bounce is definitely what’s happening now.
Biggest AI Losers
Largest drops among holdings in the Global X Artificial Intelligence & Technology ETF.
Company
Ticker
Change from Oct. 29
Value lost, in billions
Nvidia
NVDA
-9.8%
-$492.8
Meta Platforms
META
-19.1%
-$362.1
Microsoft
MSFT
-7.1%
-$285.0
Broadcom
AVGO
-12.1%
-$221.3
Tesla
TSLA
-12.6%
-$193.0
Oracle
ORCL
-21.2%
-$166.0
Palantir Technologies
PLTR
-13.4%
-$63.3
Alibaba Group
BABA
-11.0%
-$44.0
Shopify
SHOP
-18.4%
-$42.9
CoreWeave
CRWV
-43.9%
-$31.9
