U.S. stock markets experienced a decline on Thursday, with the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all reporting losses. This downturn was largely driven by ongoing concerns about artificial intelligence's impact on various industries, causing companies like Booking Holdings and Carvana to see significant drops. Simultaneously, rising oil prices, fueled by fears of a potential conflict between the United States and Iran, also contributed to the market's unease, pushing a barrel of U.S. crude to $66.43.
Despite the broader market's dip, some sectors and companies showed resilience. Deere's stock rose after reporting better-than-expected profits, and energy stocks generally benefited from the surge in oil prices. In the AI space, billionaire Ken Griffin, with a net worth of $49.5 billion, demonstrated strong confidence in Nvidia, with his firm Citadel increasing its Nvidia holdings by 120%, acquiring over 11.7 million shares valued at $2.2 billion. Nvidia is also preparing for its fiscal fourth-quarter 2025 earnings release on February 25th, with Morningstar estimating its fair value at $240 per share, highlighting its partnership with OpenAI and its strong position with GPUs and CUDA software.
However, the enthusiasm for AI stocks is not universal, as some investors are shifting funds towards AI infrastructure companies, leading to new investment products focused on suppliers like SK Hynix. Goldman Sachs, for instance, initiated a buy rating for Credo Technology Group, predicting a nearly 30% upside due to its high-speed connectivity products for AI data centers. Meanwhile, software giants such as Palantir Technologies, Adobe, and Salesforce experienced significant sell-offs in 2026, which analysts attribute more to valuation risk than direct AI disruption, suggesting AI might even enhance these incumbents' advantages.
Beyond market fluctuations, the practical application and cost of AI are also evolving. Cloudastructure recently deployed solar-powered AI security enclosures at critical infrastructure sites across the U.S., offering off-grid, sustainable solutions. Understanding AI chatbot costs in 2026 reveals varied pricing models, from per-token to per-conversation, with costs ranging from a few dollars per million tokens to $0.05-$2.00 per conversation, influenced by model choice and features. Separately, concerns about AI's impact on future job markets are influencing career choices, with Gen Z increasingly opting for trade and construction jobs.
Key Takeaways
- U.S. stocks declined due to AI concerns impacting companies like Booking Holdings and rising oil prices.
- Billionaire Ken Griffin, with a $49.5 billion net worth, significantly increased Citadel's Nvidia holdings by 120%, acquiring 11.7 million shares worth $2.2 billion.
- Nvidia's fiscal Q4 2025 earnings are due February 25th; Morningstar estimates a fair value of $240 per share, citing its partnership with OpenAI and strong GPU/CUDA moat.
- Goldman Sachs initiated a buy rating for Credo Technology Group, predicting nearly 30% upside due to its high-speed connectivity products for AI data centers.
- Software stocks, including Palantir Technologies, Adobe, and Salesforce, experienced a sell-off in 2026, primarily attributed to valuation risk rather than AI disruption.
- Investors are shifting funds towards AI infrastructure companies and component suppliers like SK Hynix, leading to new investment products.
- Cloudastructure deployed solar-powered AI security enclosures at critical U.S. infrastructure sites, expanding its market in renewable energy.
- AI chatbot costs in 2026 vary by model and features, with per-conversation pricing typically between $0.05 and $2.00.
- Concerns about AI's impact on the job market are leading Gen Z to increasingly pursue trade and construction careers.
- Centrica, owner of British Gas, saw full-year profits drop by 39% to £1.42 billion in 2025 due to milder weather and geopolitical volatility.
US Stocks Drop Amid AI Worries and Rising Oil Prices
U.S. stocks declined on Thursday as concerns about artificial intelligence and rising oil prices impacted the market. The S&P 500, Dow Jones Industrial Average, and Nasdaq composite all saw losses. Companies like Booking Holdings and Carvana experienced significant drops due to fears of AI competition. Meanwhile, oil prices increased, with a barrel of U.S. crude reaching $66.43, driven by worries of a potential conflict between the United States and Iran. Deere's stock rose after reporting better-than-expected profits.
AI Fears and Oil Prices Drive US Stocks Down
U.S. stocks fell on Thursday, with the S&P 500, Dow Jones, and Nasdaq composite all experiencing losses. This downturn was fueled by ongoing concerns about artificial intelligence impacting various industries, causing companies like Booking Holdings to drop despite beating profit expectations. Additionally, oil prices surged by 1.9% due to fears of a potential military conflict between the U.S. and Iran, which boosted energy stocks. Despite the market's decline, Deere's stock saw a significant jump after reporting higher profits.
AI Chatbot Costs Explained: Your 2026 Pricing Guide
Understanding the price of AI chatbots in 2026 involves looking at various pricing models like per-token, per-conversation, or per-seat. Costs can range from a few dollars per million tokens for smaller models to higher rates for advanced ones, with per-conversation pricing typically between $0.05 and $2.00. Key cost drivers include the model chosen, context window size, and features like retrieval augmented generation (RAG) or multimodal inputs. Strategies like model routing and prompt optimization can help reduce expenses without sacrificing quality.
Billionaire Ken Griffin Bets Big on Nvidia AI Stock
Hedge fund founder Ken Griffin, with a net worth of $49.5 billion, is making a significant investment in Nvidia, despite acknowledging the hype surrounding artificial intelligence. Citadel, Griffin's firm, recently increased its Nvidia holdings by 120%, acquiring over 11.7 million shares worth $2.2 billion. Analysts like C.J. Muse from Cantor view Nvidia positively, citing its technological leadership and the ongoing AI revolution. Despite market fluctuations, Nvidia's stock is seen as a strong performer with significant upside potential.
Nvidia Stock: Buy, Sell, or Fairly Valued Ahead of Earnings?
Nvidia is set to release its fiscal fourth-quarter 2025 earnings on February 25th. Morningstar believes the stock is moderately undervalued, with a fair value estimate of $240 per share. Investors should watch for updates on hyperscaler capital expenditure plans, Nvidia's partnership with OpenAI, and potential bottlenecks in memory and hard drives. The company's wide economic moat, driven by its GPUs and CUDA software, along with its strong financial health, supports its market position.
Goldman Sachs: Credo Technology Stock Has 30% Upside
Goldman Sachs initiated coverage of Credo Technology Group with a buy rating, predicting nearly 30% upside for the stock. Analyst James Schneider believes Credo's high-speed connectivity products for AI data centers, particularly its Active Electrical Cables (AECs), offer a competitive advantage. Despite debates on copper versus optical solutions, Schneider expects copper to remain dominant for at least five years and is encouraged by Credo's diversification into optical solutions. The bank set a 12-month price target of $165 for Credo Technology.
Cloudastructure Deploys Solar AI Security Enclosures
Cloudastructure has deployed its first solar-powered AI security enclosures across multiple critical infrastructure sites in the U.S. These off-grid units use solar energy to power advanced AI analytics, high-definition cameras, and remote guarding services. This move expands Cloudastructure's market in renewable energy and industrial sectors, aiming to boost recurring SaaS revenue. The company's CEO stated that these enclosures offer a sustainable and cost-effective solution for protecting vital infrastructure like power generation facilities and industrial plants.
Investors Shift to Infrastructure Amid AI Stock Sell-Off
As investor enthusiasm for artificial intelligence stocks cools, some are redirecting funds towards infrastructure companies expected to benefit from AI capital spending. This trend has led to the launch of new investment products, including ETFs focused on AI infrastructure. While some ETFs still hold AI giants like Nvidia, others are increasing their weighting in companies like SK Hynix, which supply essential components for AI data centers. Experts advise caution, noting the potential for overvaluation in the AI infrastructure market.
Software Stocks Face Sell-Off: AI Disruption or Valuation Risk?
Software stocks have experienced a significant sell-off in 2026, with companies like Palantir Technologies, Adobe, Salesforce, and ServiceNow seeing substantial declines. While some attribute this to fears of AI disruption, the article suggests that valuation risk is a more likely cause. Many software stocks had seen rapid growth and high valuations, making them susceptible to a correction. The article argues that AI may actually enhance incumbents' competitive advantages rather than disrupt them, implying the sell-off is a market recalibration.
British Gas Owner's Profits Fall; Gen Z Prefers Trade Jobs
Centrica, the owner of British Gas, has paused its share buyback program as its full-year profits dropped by nearly 39% to £1.42 billion in 2025. This decline was attributed to milder weather affecting household energy use and geopolitical volatility impacting energy trading. Meanwhile, concerns about AI's impact on the job market are leading younger generations, particularly Gen Z, to pursue careers in trades and construction. Data shows a significant increase in hiring for these sectors among younger workers.
Sources
- US stocks fall as AI fears keep rumbling and oil prices climb
- US stocks slip as AI fears keep rumbling and oil prices climb
- AI Chatbot Price: Ultimate Guide 2026
- Nvidia or Microsoft: Ken Griffin Bets Big on One Top AI Stock
- Ahead of Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?
- This stock has nearly 30% upside as AI data center demand grows, says Goldman
- Cloudastructure Deploys Solar-Powered AI Security Enclosures Across Multiple States, Expanding Critical Infrastructure Protection Market Opportunity
- Some US investors pivot to infrastructure amid broader AI selloff
- The 2026 Software Stock Sell-Off: AI Disruption Fear, Broken Logic, or Something Else Entirely?
- British Gas owner’s profits tumble 39% ; gen Z turning to trades for AI-proof work
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