Wall Street has been reminded that the artificial intelligence boom carries a major risk: what happens if the companies developing the most advanced AI systems decide they need to slow down?

U.S. stocks came under pressure after AI industry leaders raised concerns about rapidly advancing artificial intelligence. Semiconductor stocks took the biggest hit. Nvidia fell 3.4%, Micron dropped more than 5%, AMD and Broadcom lost more than 4%, and the PHLX semiconductor index plunged 5.9%.

For traders, this is bigger than a one-day chip selloff. Slower frontier AI development could change expectations for spending on chips, servers and data centres while giving established software companies breathing room.

Winners

1. Enterprise software

Names: $NOW (ServiceNow), $ADBE (Adobe), $WDAY (Workday)

Thes ...