Tech stocks took a significant hit in October as investors questioned the financial return on massive AI spending. The Nasdaq 100 fell more than 9% in the month, erasing roughly $5 trillion in market value. Alphabet dropped 12.6% after results showed AI-powered search summaries were hurting advertising revenue, wiping $463 billion off its value in a single day. Intel also declined sharply. A survey by the Association of Investment Companies found that investors are more negative than positive about AI, even as many see long-term potential in the technology.
The same survey of 400 private investors and 200 intermediaries highlighted deep concerns about AI's side effects. About 74% worried about misinformation, 73% feared job losses and 72% were uneasy about the erosion of human skills. Concerns about privacy and water resource pressure also ranked high. On the positive side, 68% saw improved healthcare access as a benefit and 51% believed AI would create new jobs. Younger investors tended to be more optimistic than older ones about AI's societal impact.
Not all sentiment around AI is negative. An analyst picked Nvidia, Micron and Broadcom as top AI stock buys for November, citing the sector's strong historical performance during that month. Broadcom partners with hyperscalers on custom chips and projects AI semiconductor revenue growing from $58 billion in 2026 to $230 billion by 2028. Micron supplies memory chips to both Nvidia and Broadcom and expects tighter market conditions through 2028. On forward earnings, Micron trades at 5.5 times, Nvidia at 13.5 times and Broadcom at 18 times.
AI is also changing how software vulnerabilities are found and fixed. A study by Echo of 40,000 vulnerabilities across 250 open-source container projects showed that Anthropic's Claude Mythos identified 23,019 candidate bugs, but only about 1,900 were reviewed externally. Around 40 percent of fixable vulnerabilities remained in systems for more than 180 days after a fix was available. The gap between AI-generated findings and human review capacity is widening as AI writes code faster than teams can verify it. Sourcegraph reported that organizations now see nearly twice as many pull requests merging at more than twice the size, and developers spend almost twice as long reviewing code they do not fully trust.
In education, McGraw Hill is bringing licensed course content into Microsoft Copilot through a new plugin. Teachers and students will be able to create study guides and lesson plans using copyrighted material. The plugin uses Model Context Protocol and will enter limited beta testing in early 2027. Meanwhile, iAsk.ai announced that its AI search platform has surpassed one billion cumulative searches, combining written answers, follow-up questions, guided learning and Search-to-Video in a single interface. The Chicago-based company aims to make asking a question the starting point for all types of learning.
On the business applications front, BILL Holdings launched AI-driven payment tools in a live pilot with Visa and Billtrust. The pilot allows authenticated AI agents to complete approved invoice payments through supplier portals without manual entry. A new risk intelligence engine flagged an average of $138,000 in unusual or mistaken invoices per customer within just two months. Separately, Polish renewable-energy company Green Capital plans to build a $3 billion AI data center campus in Patagonia, Argentina, with on-site wind turbines, solar farms and gas-fired generators. Construction is not expected to begin until around 2028, and no named tenant has been secured yet.
Key Takeaways
- The Nasdaq 100 fell over 9% in October, wiping about $5 trillion in market value amid AI spending concerns.
- Alphabet dropped 12.6% after AI search summaries hurt ad revenue, losing $463 billion in one day.
- A survey found 74% of investors worry about AI misinformation and 73% fear job losses, though 68% see healthcare benefits.
- Nvidia, Micron and Broadcom were recommended as top AI buys for November, with Broadcom projecting AI chip revenue rising from $58 billion to $230 billion by 2028.
- Anthropic's Claude Mythos found 23,019 candidate bugs, but only about 1,900 were externally reviewed, leaving a large validation gap.
- Around 40 percent of fixable vulnerabilities stayed in systems for more than 180 days after a fix was available.
- McGraw Hill is launching a Microsoft Copilot plugin for licensed education content, entering beta in early 2027.
- iAsk.ai surpassed one billion cumulative searches on its AI platform, which combines written answers and video learning tools.
- BILL Holdings' AI payment pilot with Visa flagged an average of $138,000 in unusual invoices per customer in two months.
- Green Capital plans a $3 billion AI data center campus in Patagonia, Argentina, with construction starting around 2028.
Tech stock values fall as AI spending worries grow
The Nasdaq 100 dropped over 9% between October 6 and the end of the month, wiping about $5 trillion in market value. Investors grew worried about how much tech companies are spending on AI. Alphabet fell 12.6% after its search AI summaries hurt advertising revenue. A survey by the Association of Investment Companies found investors are more negative than positive about AI. Still, the market has recovered after similar selloffs in the past.
AI investors worry about harm despite profiting from boom
The Association of Investment Companies surveyed 400 private investors and 200 intermediaries about AI. It found 74% worried about misinformation, 73% about job losses and 72% about loss of human skills. Around 51% were concerned about privacy and 45% about water resource pressure. However, 68% saw improved healthcare access as a positive and 51% saw new job creation. Younger investors were more positive than older ones about AI's impact on society.
Tech selloff raises questions about AI spending
Concerns over AI capital spending by big tech companies wiped trillions of dollars from their combined market value. The Nasdaq 100 fell more than 9% from its October 6 peak to the end of the month. Alphabet dropped 12.6% after results showed AI search summaries were hurting ad revenue, with $463 billion wiped off its value in one day. Intel also declined sharply. The Association of Investment Companies said investors are more negative than positive about AI despite seeing its long-term potential.
Three AI stocks to watch in November
An analyst picked Nvidia, Micron and Broadcom as top AI stock buys for November. Nvidia makes leading AI computing units. Broadcom designs custom AI chips for hyperscalers and expects AI semiconductor revenue to grow from $58 billion in 2026 to $230 billion by 2028. Micron makes memory chips for both Nvidia and Broadcom and faces tight market conditions through 2028. At 5.5 times forward earnings, Micron looks cheap while Nvidia trades at 13.5 times and Broadcom at 18 times next year's estimates.
Nvidia, Micron and Broadcom recommended as AI buys
November is a strong month for the S&P 500 on average, making it a good time to consider AI stocks. Nvidia, Micron and Broadcom all play key roles in the AI build-out. Broadcom works with hyperscalers on custom chips and projects AI semiconductor revenue of $58 billion in 2026, rising to $230 billion by 2028. Micron supplies memory chips and its CEO expects tighter market conditions in 2027 and 2028. Based on forward earnings, Micron trades at 5.5 times, Nvidia at 13.5 times and Broadcom at 18 times.
AI speeds up finding bugs but safety gaps remain
AI is finding software vulnerabilities much faster, but fixes and reviews are not keeping up. Echo studied 40,000 vulnerabilities and 250 open-source container projects. Anthropic's Claude Mythos found 23,019 candidate bugs, but only about 1,900 were reviewed externally. Around 40 percent of fixable vulnerabilities stayed in systems for more than 180 days after a fix was available. Security teams need better tools to validate findings and apply fixes quickly.
McGraw Hill brings education content to Microsoft Copilot
McGraw Hill is launching a new AI plugin that brings licensed education content into Microsoft Copilot. The plugin will let teachers and students create study guides and lesson plans using licensed course material. It uses Model Context Protocol and will enter limited beta testing in early 2027. The partnership aims to make it easier for educators to create customized learning materials and improve student outcomes.
New AI model improves weather data from sparse observations
Researchers developed a hybrid AI framework that combines a convolutional neural network with a learnable-kernel Gaussian Process. The model performs data assimilation and bias correction from extremely sparse observations. It was tested on sea surface temperature and salinity data. The new method outperforms 3D-Var and reduces inference time by more than 98 percent. It also provides uncertainty estimates and a data-driven covariance over the whole grid.
AI writes code faster than teams can review it
AI is generating pull requests at a pace that outpaces human review, according to Andrew Norrish of Sourcegraph. Organizations now see nearly twice as many PRs merging at more than twice the size. Developers spend almost twice as long reviewing code they do not fully trust, and almost half admit they do not always verify it. Forecasts predict that two thirds of new code will be AI-written by 2027. Sourcegraph offers tools for search, monitoring, and bulk remediation to help teams keep up.
iAsk.ai hits one billion total searches
iAsk.ai announced that its AI search platform has surpassed one billion cumulative searches. The platform offers written answers, follow-up questions, guided learning, and Search-to-Video in one place. Users can request tutorial videos alongside written responses. The company behind the platform is Ai Search Inc., based in Chicago. The milestone brings different learning tools under a single starting point: asking a question.
BILL Holdings launches AI payment tools with Visa and Billtrust
BILL Holdings introduced new AI-driven finance tools and a live pilot with Visa and Billtrust. The pilot lets authenticated AI agents complete approved invoice payments through supplier portals without manual entry. A new risk intelligence engine flagged an average of US$138,000 of unusual or mistaken invoices per customer in just two months. The technology targets specific finance pain points rather than generic automation.
Bridgewater CEO Nir Bar Dea discusses meritocracy and AI on Bloomberg
Bridgewater CEO Nir Bar Dea appeared on Bloomberg's Peer-to-Peer with David Rubenstein to discuss his path from intern to leading the firm. He explained how the firm builds a culture of debating ideas and learning from mistakes. Bar Dea emphasized hiring fast learners with diverse backgrounds. He described why the firm is built to surface ideas that are not found in textbooks. The episode was released on October 28, 2026.
Green Capital plans $3 billion AI data center campus in Patagonia
Polish renewable-energy company Green Capital plans to build a $3 billion AI data center campus in Patagonia, Argentina. President Javier Milei is promoting the region as a destination for AI computing. At projected peak demand, the campus would use about 2.7 times the electricity consumed by Buenos Aires in 2025. Green Capital plans to generate power on site using wind turbines, solar farms and gas-fired generators. Construction is not expected to start until around 2028, and the company has not yet secured a named tenant.
Sources
- Tech selloff: are AI spending concerns justified?
- Investors worried about AI’s downsides despite profiting from the boom, says AIC
- Tech selloff: are AI spending concerns justified?
- My Top 3 AI Stock Picks for November
- My Top 3 AI Stock Picks for November
- AI Is Accelerating Vulnerability Discovery. What Happens Next Matters More.
- McGraw Hill to bring licensed education content into Microsoft Copilot through new AI plugin
- Patch-Based Deep Kernel Learning for Data Assimilation and Bias Correction with Extremely Sparse Observations
- AI writes faster than humans can review
- iAsk.ai Surpasses One Billion Searches
- Did AI Payment Agents Just Shift Bill's (BILL) Investment Narrative?
- Writing the Next Textbook: Nir Bar Dea on Meritocracy, AI, and Building a Firm of Learners
- Patagonia AI Campus: $3B, 2.7x Buenos Aires Power [2026]
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