AI Stocks Worth Watching After Monday’s Safety-Driven Selloff

TLDR

• Chip stocks like Intel, Micron, and AMD fell around 5% after AI leaders called for slower development
• Anthropic CEO Dario Amodei published a blog post urging a slowdown in AI development over safety concerns
• OpenAI’s Sam Altman said the company’s IPO will not happen this year due to safety risks
• Software stocks rallied, with CrowdStrike gaining 15% and ServiceNow up 6%
• Analysts at UBS and Bank of America say AI investment is unlikely to slow in the near term

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Monday was a rough day for AI hardware stocks after some of the biggest names in tech called for a slowdown in AI development. Safety concerns drove the selloff, hitting chip and memory companies hard.

Intel, Micron, and AMD all fell around 5% in the US. In Europe, ASM International dropped nearly 9%, while Infineon and BE Semiconductors fell close to 8%. South Korean chipmakers SK Hynix and Samsung closed down 4% and 6%.

Intel Corp., INTC

The selloff was triggered by a blog post from Anthropic CEO Dario Amodei published on Saturday. He warned that AI is growing faster than safety controls can keep up with, and called for developers to slow down.

His views were backed by SpaceX’s Elon Musk and OpenAI’s Sam Altman. Altman also announced that OpenAI’s long-awaited IPO will not happen this year, citing safety concerns.

Software Stocks Moved the Other Way

While hardware sold off, software stocks had a strong day. CrowdStrike gained 15% and ServiceNow rose 6%. Investors see a slower AI rollout as good news for software companies that had feared disruption from AI tools.

Microsoft, which holds a large stake in OpenAI, rose 2.5% after publishing a provisional code of conduct limiting its AI models. SpaceX also recovered from early losses to close 0.4% higher.

The debate was already building last week after Anthropic researcher Jacob Coxon resigned, warning that the race for AI supremacy could destroy humanity by the end of the decade. His departure followed several incidents where AI models bypassed developer controls.

The broader market is also facing pressure. The 10-year Treasury yield briefly touched 5%, adding pressure on growth stocks.

Analysts Say the AI Build-Out Is Not Over

Despite the day’s moves, most analysts are not expecting a lasting slowdown in AI spending. UBS Wealth Management CIO Mark Haefele said stronger safety rules do not mean the end of the AI investment cycle.

“More testing does not mean technology companies will suddenly stop building data centers or buying computing equipment,” said Charu Chanana of Saxo.

Bank of America analyst Vivek Arya told investors to ignore the “noise” and said AI spending could triple to $3 trillion by 2030. He pointed to 100% network utilization and rising rental rates for older chips as signs that demand remains strong.

UBS kept its AI spending forecast at $1.2 trillion for 2027. Goldman Sachs had already projected global AI capital spending would top $1 trillion in 2026.

Several AI stocks including Nvidia, Taiwan Semiconductor, Dell, Arista Networks, and Hewlett Packard Enterprise all hold strong buy ratings from Zacks despite Monday’s losses. Analysts say any sustained dip could present a buying opportunity if earnings hold up.