AI Safety Concerns Send Nvidia Stock into Free Fall
Nvidia stock is under pressure as renewed debate over AI safety and development pace weighs on semiconductor stocks. The company's shares fell nearly 3% in Monday's premarket session, with S&P 500 futures declining 0.7%. Rival chipmakers, including Advanced Micro Devices (AMD), Intel (INTC), Broadcom (AVGO), and Marvell Technology (MRVL) also slid between 3% to 7%. This weakness comes as AI safety concerns resurface, with Anthropic CEO Dario Amodei calling China the 'toughest dilemma' in establishing a global speed limit on AI progress.
Amodei published an essay urging AI companies to slow frontier development, stating 'I don't know if it's possible, but we should try.' The stock carries a Buy rating with an average price forecast of $348.22, with analysts maintaining their forecasts despite the recent decline. Top ETFs holding Nvidia include Franklin Focused Dynamic Growth (FFOG), First Trust Innovation Leaders (ILDR), and Xtrackers Net Zero Pathway Paris Aligned US Equity (USNZ), which may influence trading activity.