AI Warnings Hit Chipmakers as Spending Concerns Rise

Nvidia and other chipmakers have taken a hit after warnings from AI developers raised concerns about future hardware spending. The warning comes from Dario Amodei, chief executive of AI developer Anthropic, who joined rival executives in calling for a slower pace of AI development.

However, analysts like Jeffrey Favuzza at Jefferies found no clear sign that this would moderate spending on chipmakers. He highlighted Amodei's clarification that the call did not mean halting model training, but rather slowing down the process.

Micron Technology Inc saw the largest decline among the three chipmakers, falling 6% to $914.30 after Madison Rezaei at Bernstein questioned how quickly demand could shift from model training to inference, the process through which trained AI models make predictions.