Nvidia faces AMD Google competition as Anthropic impacts software

Key Takeaways

• A Citrini Research report, "The 2028 Global Intelligence Crisis," predicted AI could cut 5% of white-collar jobs in 18 months, leading to market volatility.
• Co-author Alap Shah proposed an AI tax to support displaced workers and warned that blue-collar jobs are also at risk from AI-driven displacement.
• Nvidia's upcoming earnings report is a key test for the AI market, with analysts expecting over 62% profit growth and 68% revenue jump, primarily from its AI chip-driven data center business.
• Nvidia faces skepticism regarding AI spending sustainability and competition from rivals like AMD and Google (Alphabet) in AI hardware development.
• Anthropic's Claude AI chatbot, with features like legal document drafting and code modernization, has contributed to billions in tech stock losses, particularly in software and cybersecurity.
• The iShares Expanded Tech-Software Sector ETF has fallen 26%, reflecting fears of AI disrupting traditional software services.
• Enterprise Products Partners is expanding natural gas infrastructure to meet increased demand from power-hungry AI data centers, with new assets expected by 2027.
• The S&P/TSX Capped Information Technology Index has fallen over 20% year-to-date, indicating broader tech stock declines due to AI disruption fears.
• Janus Henderson reports that AI's expansion is reshaping markets, influencing debt issuance and power demand, with the AI investment cycle still in early stages.
• Duolingo faces mixed analyst views and concerns about slowing growth and bookings, despite its reliance on an AI learning engine.

AI Tax Proposed Amid Job Loss Fears After Market Selloff

Alap Shah, co-author of a Citrini Research report, suggests an AI tax to help workers displaced by artificial intelligence. The report predicted AI could cut white-collar jobs by 5% in 18 months, impacting economies like the US. Shah believes governments should tax AI gains to protect consumer demand and cushion job losses, especially in service industries like banking and insurance. He noted that technology shares have recently fallen due to fears of AI disrupting business models. Shah was surprised by the market's strong reaction to the report, which he considered a hypothetical scenario.

AI Recession Fears: Blue-Collar Jobs Not Safe, Report Warns

A viral research report suggests that blue-collar jobs may not be safe from an AI-driven recession, according to coauthor Alap Shah. The report theorizes that mass white-collar layoffs due to AI could pressure the blue-collar job market. If white-collar jobs disappear and there are no new roles, displaced workers might move into blue-collar positions, increasing competition. This scenario could lead to a domino effect, impacting housing, mortgages, and eventually causing a global stock sell-off and recession. Shah believes there is only one labor market, meaning impacts on one sector will affect others.

Viral AI Report Sparks Market Slide Predicting Job Losses

A hypothetical report from Citrini Research, titled 'The 2028 Global Intelligence Crisis,' predicts a future where advanced AI leads to job obsolescence and economic downturns. The report suggests a negative feedback loop where companies cut jobs, invest more in AI, leading to further job losses and reduced demand. This scenario could impact service-heavy sectors like finance and insurance. The report's release caused markets to slide, with the Dow dropping over 800 points and the Nasdaq falling more than 1%. Alap Shah, a co-author, noted the market is entering a highly volatile period.

Nvidia Earnings Face AI Market Test Amid Competition

Nvidia's upcoming earnings report is a crucial test for the AI market, as investors question the sustainability of AI spending. While Nvidia's stock has seen modest gains this year, rivals like AMD and Alphabet are also developing AI hardware. Analysts expect Nvidia's profit to surge over 62% and revenue to jump more than 68% in the latest quarter. Despite facing tougher comparisons, demand for Nvidia's AI chips is expected to remain strong. Potential supply chain issues and competition from rivals like AMD are key concerns.

Nvidia Earnings Meet Skepticism on AI Spending

Nvidia, the only megacap tech stock with gains this year, faces Wall Street skepticism ahead of its earnings report due to concerns about massive AI infrastructure spending. The company's data center business, which provides AI chips, accounts for about 90% of its revenue. While tech giants are increasing their AI investments, some analysts fear the industry might be overbuilding. Analysts expect Nvidia to report a 68% revenue jump for the fiscal fourth quarter. Investors will be watching for updates on new products like Vera Rubin systems and potential impacts from acquisitions.

Enterprise Products Partners Eyes AI Growth and 2027 Payouts

Enterprise Products Partners is focusing on increased natural gas demand driven by AI data centers. The company expects new assets to be operational in 2027, supporting its goal of double-digit growth that year. Management highlights a consistent record of dividend growth and a strong midstream infrastructure model. Enterprise Products Partners utilizes its extensive pipeline and storage network to transport natural gas and other products. Their strategy includes expanding infrastructure to meet growing demand, particularly from power-hungry AI data centers.

Duolingo's AI Growth Story Questioned Amid Insider Sales

Duolingo faces mixed analyst views and leadership changes before its February 26 earnings release, alongside routine insider stock sales. While some analysts remain optimistic about Duolingo's AI-driven product development and expected financial improvements, others are cautious about slowing growth and bookings. The company's investment narrative relies on its AI learning engine and user base to drive subscriptions. Key catalysts include the upcoming earnings report, where guidance on bookings and user growth will be crucial. Concerns about slowing core market growth exist despite AI advancements.

Slumping Tech Stocks Reignite AI Disruption Fears

A recent slump in technology stocks has intensified concerns among analysts and investors about market disruptions caused by artificial intelligence. The S&P/TSX Capped Information Technology Index has fallen over 20% year-to-date, mirroring a broader U.S. market decline. Analysts attribute the tech stock falls partly to fears of an AI-fueled stock market bubble bursting. While some selling may be excessive, concerns about AI upending established businesses, particularly in software, are significant. Companies with strong competitive advantages may be better positioned to withstand AI's impact.

Anthropic's Claude AI Triggers Billions in Tech Stock Losses

Anthropic's AI chatbot Claude has significantly impacted tech stocks this year, causing billions in market cap losses, particularly in software and cybersecurity. Updates to Claude, including legal document drafting and code security scanning, have fueled fears of AI disrupting various industries. The iShares Expanded Tech-Software Sector ETF has fallen 26% in 2026. Anthropic's ability to modernize code, like COBOL systems, further raises concerns about the future of traditional software services. This has led to a broad sell-off in the software sector.

AI Trade: Winners in Hardware, Losers in Services

Big Tech's increasing capital expenditure on artificial intelligence is reshaping the market, with clear winners and losers emerging. Stifel's Thomas Carroll discusses how companies are benefiting from AI hardware development while others in AI services face challenges. The rising spending on AI infrastructure is a major trend influencing investment strategies. Identifying companies strong in AI hardware versus those in AI services is key for navigating this evolving market. Further analysis on market action and expert insights can provide a clearer picture.

AI Fears Roil Stocks After Years of Hype and Gains

Concerns about aggressive artificial intelligence spending are causing volatility in stock markets, shifting sentiment after years of AI-fueled gains. Companies like Visa, Mastercard, and IBM have seen sharp declines amid worries that AI might not translate into profits. A viral research post from Citrini detailing potential widespread unemployment and economic slowdown has intensified these fears. While AI has driven market records, investors are now questioning its long-term impact on various industries, leading to a speculative reaction in stock prices.

AI Capital Boom Reshapes Markets, Janus Henderson Reports

Janus Henderson portfolio managers report that AI's rapid expansion is reshaping markets beyond just soaring tech stocks, influencing debt issuance, SaaS disruption, and power demand. They advise focusing on the broad industry disruption rather than short-term AI stock swings. The report notes that current valuations are less extreme than past tech bubbles, and the AI investment cycle is still in its early stages. Debt financing is crucial for AI buildout, with hyperscale firms tapping credit markets, and utilities are issuing debt to expand capacity due to AI's high power consumption.

AI Doom and Tariff Gloom Shake Global Markets

Renewed anxiety surrounding artificial intelligence, fueled by a viral research note from Citrini, is impacting global markets alongside confusion over U.S. tariffs. The Citrini note describes a future scenario of widespread unemployment and economic decline, contributing to nervousness in AI-related sectors. Meanwhile, new U.S. duties on imported goods have created trade uncertainty. Global crude oil prices have turned positive year-on-year, potentially impacting inflation. Markets are also watching upcoming events like the U.S. Consumer Confidence Index and President Trump's State of the Union address.

Sources

• Citrini Report Author Calls for AI Tax After Scare-Trade Selloff
• A viral AI report warns that blue-collar jobs aren't recession-proof
• Markets slide after viral AI paper predicts job losses, recession, says ‘have time to be proactive’ — What to know
• Nvidia results are AI market's biggest test amid competitive worries
• Nvidia earnings report collides with Wall Street skepticism over AI spending
• Enterprise Products Partners Targets AI Linked Gas Growth And 2027 Payout Power
• Are Duolingo’s (DUOL) Insider Sales And CFO Shift Reframing Its AI-Led Growth Story?
• Slumping tech stocks revive concerns of AI-fuelled disruption
• Claude's AI tools keep wiping out billions from tech stocks
• AI trade: Who are the hardware winners and the services losers?
• AI-linked fears roil stocks after years of hype, gains
• AI’s capital boom is reshaping markets, says Janus Henderson
• Morning Bid: AI doom and tariff gloom