Investors are shying away from buying the dip in a volatile sell-off of perceived “AI losers”, choosing instead to stand on the sidelines until the full scale of the economic disruption becomes clearer.
The launch of a number of new AI tools in recent days has threatened to disrupt traditional business models in sectors including trucking, real estate, wealth management and advertising, with violent share price moves highlighting a market wracked with nerves about what comes next.
Despite companies rushing to reassure investors that AI will enhance their business and that plunging share prices are an overreaction, many portfolio managers are resisting the temptation to buy the dips that emerge.