Artificial intelligence is quickly reshaping U.S. financial markets, boosting some companies while putting others at risk as investors brace for rapid change.
Nvidia Corp., currently valued at close to $4.5 trillion , holds the position as the world’s most valuable business, while AI innovators such as OpenAI and Anthropic have secured funding worth tens of billions of dollars.
But beyond the enthusiasm, investors are preparing for market shifts on a scale not seen since the early days of the web, according to Bloomberg .
Many are repositioning their investments away from companies seen as exposed to artificial intelligence, driven competition, anticipating a drop in demand for their offerings as the technology becomes more prevalent.
Website-creation platform Wix.com Ltd., stock-image supplier Shutterstock Incorporated, and software producer Adobe Incorporated are among 26 businesses identified by Bank of America as being in the highest-risk category.
Since mid-May, this collection has trailed the S&P 500 Index by about 22 percentage points, after previously moving mostly in line with the market since ChatGPT first appeared in late 2022.
“The disruption is real,” said Daniel Newman, CEO of the Futurum Group. “We thought it would happen over five years. It seems like it is going to happen over two. Service-based businesses with a high headcount are going to be really vulnerable.”
Although no major business collapses have yet been tied directly to artificial intelligence, software that can program, handle complex questions, and produce imagery or videos is beginning to challenge older business approaches. With firms such as Microsoft Corp. and Meta Platforms Inc. committing hundreds of billions to AI development, the competitive strain is building.
Wix.com and Shutterstock have both seen their share prices drop more than 33% this year, compared with an 8.6% increase for the S&P 500. Adobe’s stock is down 23% as investors worry customers may turn to AI for making images, like Coca-Cola did in an ad campaign.
The nervousness extends past the creative and staffing industries. Gartner Incorporated’s shares sank 30% last week, the steepest one-week drop in its history, after it cut its yearly revenue forecast.
While Gartner pointed to U.S. policy shifts such as budget cuts and tariffs, some analysts suggested that AI could offer less expensive alternatives to its research services. Morgan Stanley said the update “added fuel to the AI disruption case,” and Baird noted heightened concerns about AI’s influence. Gartner did not respond.
Not every business on AI’s path is struggling
Technology has a long history of displacing older markets, from telegraphs replaced by telephones to Blockbuster losing out to Netflix.
Adam Sarhan, CEO of 50 Park Investments, said, “Any company where you’re paying someone to do something that AI can do faster and cheaper will be wiped out, think graphic design, administrative work, data analysis.”
Duolingo Inc., despite competition from AI translation systems, has doubled its share price over the last year after boosting its 2025 revenue guidance, thanks in part to its own AI-powered tools. Still, questions linger over how sustainable such growth will be.
The gap between stock market winners and laggards has widened considerably in 2025. Earlier this year, low-cost AI products from China raised doubts about U.S. dominance, but instead of slowing their efforts, large tech players have expanded their budgets.
Microsoft, Meta, Alphabet Inc., and Amazon.com Inc. are forecast to invest roughly $350 billion in total capital spending this fiscal year, almost 50% higher than the prior year, largely to expand AI infrastructure. This surge has benefited companies like Nvidia, whose processors drive most AI systems.
Determining which enterprises are most at risk isn’t always simple. Alphabet, a leader in AI development, still appears on Bank of America’s high-risk roster, in part because it must defend its stronghold in online search. In other cases, the risk is clearer: advertising giant Omnicom Group Inc. has dropped 15% this year, and WPP Plc has plummeted over 50%, amid reports that Meta aims to fully automate ad creation.
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