The artificial intelligence sector is experiencing a period of both significant investment and market volatility, as investors grapple with high valuations and evolving market dynamics. A broader sell-off in AI stocks recently saw shares of enterprise AI software company C3.ai fall 5.3%, trading at $15.90, a substantial drop from its December 2024 high of $42.94. This decline was partly triggered by Palantir Technologies' shares falling over 6% despite the company reporting strong earnings, leading to concerns about an unsustainable bubble in the AI market. Famed investor Michael Burry, known from "The Big Short," is actively betting against the AI boom, holding put options on 1 million Nvidia shares and 5 million Palantir shares, valued at $186.58 million and $912.1 million respectively, signaling his belief that these stocks, with Palantir's 439.45x P/E ratio, may face a correction. The Dow, S&P 500, and Nasdaq all declined as investors took profits from high-flying technology stocks. Meanwhile, major companies continue to invest heavily in AI infrastructure and applications. Microsoft, for instance, signed a five-year, $9.7 billion agreement with IREN for GPU cloud services, leveraging Nvidia GB300-powered AI systems from IREN's Texas data centers. IREN also secured a separate $5.8 billion deal with Dell Technologies for GPUs. Microsoft also entered an AI licensing agreement with People Inc. to join its pay-per-usage AI content marketplace, aiming to compensate publishers fairly. People Inc. noted that Google AI Overviews have impacted its advertising revenue, which dipped 3% to $161 million, affecting referral traffic. On a positive note, Thomson Reuters reported higher profit and revenue in the third quarter of 2025, with net income rising to $423 million and revenue increasing 3% to $1.78 billion, driven by strong demand for its AI products like CoCounsel Legal and CoCounsel for tax, audit, and accounting. Generative AI-enhanced products now account for 24% of the group's underlying contract value. Tokyo Seimitsu also increased its sales forecast for fiscal year 2026, expecting full-year sales of ¥164 billion, due to high demand for AI and high-performance computing, with first-half AI and HPC orders rising 24%. In the hardware space, xMEMS Labs secured $21 million in Series D funding to boost production of its piezoMEMS loudspeakers and micro-cooling chips for AI-enabled consumer electronics, including its Sycamore MEMS loudspeaker for AI glasses and smartwatches. For investors looking to enter the AI market, Robotics ETFs like the Global X Robotics and Artificial Intelligence ETF (BOTZ), which holds Nvidia as its top position, and the actively managed Ark Autonomous Technology and Robotics ETF (ARKQ), including companies like Tesla and Teradyne, offer exposure to the growing robotics industry.
Key Takeaways
- The AI sector is experiencing a market sell-off, with C3.ai shares falling 5.3% to $15.90 and Palantir Technologies' shares dropping over 6% despite strong earnings, triggering broader investor concerns about high valuations.
- Investor Michael Burry is betting against the AI stock boom, holding put options on 1 million Nvidia shares and 5 million Palantir shares, valued at $186.58 million and $912.1 million respectively.
- Microsoft has committed significantly to AI infrastructure, signing a five-year, $9.7 billion deal with IREN for Nvidia GB300-powered GPU cloud services.
- IREN also secured a separate $5.8 billion deal with Dell Technologies for GPUs and related equipment, highlighting its shift to AI cloud services.
- Thomson Reuters reported a 3% increase in Q3 2025 revenue to $1.78 billion and net income of $423 million, driven by strong demand for its AI products like CoCounsel Legal.
- Generative AI-enhanced products now constitute 24% of Thomson Reuters' underlying contract value.
- People Inc. partnered with Microsoft for an AI licensing agreement, while noting Google AI Overviews caused a 3% dip in its advertising revenue to $161 million due to reduced referral traffic.
- Tokyo Seimitsu raised its fiscal year 2026 sales forecast to ¥164 billion, with first-half AI and high-performance computing orders increasing by 24%.
- xMEMS Labs secured $21 million in Series D funding to mass-produce piezoMEMS loudspeakers and micro-cooling chips for AI-enabled consumer electronics, including its Sycamore MEMS loudspeaker.
- Robotics ETFs like BOTZ (top holding: Nvidia) and ARKQ (includes Tesla) offer investors exposure to the AI and robotics market.
Robotics ETFs offer AI investment opportunities
Robotics ETFs provide investors a way to enter the AI market. The Global X Robotics and Artificial Intelligence ETF (BOTZ) tracks over 50 robotics stocks, with Nvidia as its top holding. The Ark Autonomous Technology and Robotics ETF (ARKQ) is actively managed and includes companies like Tesla and Teradyne. Both ETFs have similar investment strategies and expense ratios, offering exposure to the growing robotics industry.
Robotics ETFs offer AI investment opportunities
Robotics ETFs provide investors a way to enter the AI market. The Global X Robotics and Artificial Intelligence ETF (BOTZ) tracks over 50 robotics stocks, with Nvidia as its top holding. The Ark Autonomous Technology and Robotics ETF (ARKQ) is actively managed and includes companies like Tesla and Teradyne. Both ETFs have similar investment strategies and expense ratios, offering exposure to the growing robotics industry.
Robotics ETFs offer AI investment opportunities
Robotics ETFs provide investors a way to enter the AI market. The Global X Robotics and Artificial Intelligence ETF (BOTZ) tracks over 50 robotics stocks, with Nvidia as its top holding. The Ark Autonomous Technology and Robotics ETF (ARKQ) is actively managed and includes companies like Tesla and Teradyne. Both ETFs have similar investment strategies and expense ratios, offering exposure to the growing robotics industry.
Thomson Reuters Q3 profit and revenue grow with AI demand
Thomson Reuters reported higher profit and revenue in the third quarter of 2025. Net income rose to $423 million from $301 million a year ago, and revenue increased 3% to $1.78 billion. This growth came from strong demand for its AI products, including agentic AI solutions like CoCounsel Legal and CoCounsel for tax, audit, and accounting. The company's three largest segments, known as the Big 3, saw organic revenue growth of 9%.
Thomson Reuters revenue rises on strong AI product demand
Thomson Reuters announced higher third-quarter revenue on November 4, 2025, driven by its AI innovation strategy. The company's revenue increased 3% to $1.78 billion, meeting expectations, and adjusted earnings per share were 85 cents, beating forecasts. CEO Steve Hasker noted strong performance from new AI features in legal and tax products, including CoCounsel Legal and Westlaw's deep research. Generative AI-enhanced products now account for 24% of the group's underlying contract value. Thomson Reuters also plans to spend $9 billion on potential acquisitions.
C3.ai shares drop amid AI stock sell-off
Shares of enterprise AI software company C3.ai fell 5.3% today as a broader sell-off hit artificial intelligence stocks. Investors worry that the recent boom in the AI sector might be an unsustainable bubble. This decline was partly triggered by Palantir Technologies' shares falling over 6% despite strong earnings. C3.ai stock is down 54.1% since the start of the year, trading at $15.90, significantly below its December 2024 high of $42.94.
C3.ai shares drop amid AI stock sell-off
Shares of enterprise AI software company C3.ai fell 5.3% today, caught in a wider sell-off of artificial intelligence stocks. This decline reflects growing investor concern that the AI sector's rapid growth might be an unsustainable bubble. The drop was triggered by Palantir Technologies' shares falling, suggesting investors want more than just good financial results from AI companies. C3.ai, which is not consistently profitable, is especially sensitive to these market shifts.
xMEMS Labs raises $21 million for AI device tech
xMEMS Labs secured $21 million in Series D funding to boost production and sales of its piezoMEMS loudspeakers and micro-cooling chips. Boardman Bay Capital Management led the funding round, with other investors also participating. The company plans to use the money to mass-produce its solid-state loudspeakers and µCooling fan-on-a-chip devices for AI-enabled consumer electronics. xMEMS Labs, based in California, holds over 250 patents and developed Sycamore, a thin MEMS loudspeaker for AI glasses and smartwatches.
Tokyo Seimitsu boosts sales outlook on strong AI demand
Tokyo Seimitsu increased its sales forecast for fiscal year 2026 due to high demand for AI and high-performance computing. The company reported second-quarter sales of ¥46.2 billion and operating profit of ¥10.1 billion. Its first-half AI and HPC orders rose 24%, with sales jumping 55%. Tokyo Seimitsu now expects full-year sales of ¥164 billion and operating profit of ¥31.5 billion. The company also completed its Nagoya plant in August.
People Inc partners with Microsoft for AI content
People Inc. signed an AI licensing agreement with Microsoft to join its pay-per-usage AI content marketplace. CEO Neil Vogel announced the deal during IAC's third-quarter earnings call on November 4, 2025. This partnership aims to fairly compensate publishers for their content used in AI. While digital revenue grew 9% to $269 million, advertising revenue dipped 3% to $161 million due to Google AI Overviews affecting referral traffic. People Inc. maintains its audience by adapting to changes in Google and AI.
Stock market drops as AI valuation fears grow
The stock market fell sharply on Tuesday, with the Dow, S&P 500, and Nasdaq all declining. Investors sold off high-flying technology stocks due to concerns about the high valuations of artificial intelligence companies. This sell-off was triggered after Palantir Technologies' earnings report, where traders took profits despite the company beating expectations. The 10-year Treasury note yield also fell to 4.1%, and crude oil prices dropped over 1%, suggesting broader economic concerns.
Michael Burry bets against AI stock surge
Famed investor Michael Burry, known from "The Big Short," is betting against the current artificial intelligence stock boom. His hedge fund, Scion Asset Management, holds put options on 1 million Nvidia shares and 5 million Palantir shares, valued at $186.58 million and $912.1 million respectively. Nvidia stock has surged over 1,300% and Palantir shares climbed 1,700% in the past five years. Burry's move suggests he believes these AI stocks, with high valuations like Palantir's 439.45x P/E ratio, may face a significant correction.
Microsoft signs $9.7 billion AI deal with IREN
Microsoft has signed a five-year, $9.7 billion agreement with IREN for GPU cloud services, driven by surging AI demand. IREN will provide Microsoft access to Nvidia GB300-powered AI systems from its Texas data centers. IREN also secured a separate $5.8 billion deal with Dell Technologies for GPUs and related equipment. This partnership highlights IREN's expertise in large-scale GPU infrastructure and its shift from Bitcoin mining to AI cloud services. Following the announcement, IREN's stock rose over 30% in premarket trading.
US stocks fall on AI valuation fears
US stocks tumbled on Tuesday, with the Nasdaq Composite leading the decline, as investors worried about the high valuations of artificial intelligence stocks. Technology companies, which have driven market growth this year, saw significant drops. This sell-off reflects profit-taking and a reevaluation of future growth for AI companies. Bitcoin also fell below $100,000, adding to the cautious market mood. Investors are now closely watching economic data to predict the Federal Reserve's next moves on interest rates.
Sources
- Will These 2 Robotics ETFs Surge 50% or More as the AI Revolution Takes Off?
- Will These 2 Robotics ETFs Surge 50% or More as the AI Revolution Takes Off?
- Will These 2 Robotics ETFs Surge 50% or More as the AI Revolution Takes Off?
- Thomson Reuters 3Q Profit, Revenue Rise on Demand for AI Products
- Thomson Reuters reports higher third-quarter revenue
- Why C3.ai (AI) Shares Are Trading Lower Today
- Why C3.ai (AI) Shares Are Trading Lower Today
- xMEMS Labs raises $21m to scale AI device cooling tech
- Tokyo Seimitsu raises sales outlook amid strong AI demand By Investing.com
- People Inc. strikes Microsoft AI licensing deal as Google’s AI Overviews hit programmatic ad revenue
- Stock Market Today: Dow, S&P 500, Nasdaq Set to Open Down; Palantir, AMD, Kenvue, Nvidia, More Movers
- Famed Investor Michael Burry Bets Against the AI Boom
- Microsoft Strikes $9.7B Deal With IREN as AI Demand Surges
- Stock market today: Dow, S&P 500, Nasdaq slide as tech hit on AI valuation fears, bitcoin dips below $100K
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