Artificial intelligence may be fueling record gains for companies like Nvidia Corp., but it’s also sparking a sell-off in firms seen as vulnerable to disruption, Bloomberg News reported. From website builder Wix.com Ltd. to digital image provider Shutterstock Inc. and software giant Adobe Inc., shares of companies identified as high-risk from AI have plunged, with Bank of America’s “AI risk” basket underperforming the S&P 500 by about 22 percentage points since mid-May.
The shift reflects mounting investor anxiety that AI applications — capable of writing code, creating images, and automating services — could gut demand in industries from graphic design to staffing. Wix.com and Shutterstock are down more than 33% this year, Adobe has dropped 23%, and staffing firms like ManpowerGroup Inc. and Robert Half Inc. have suffered steep losses as automation fears grow.
The anxiety has spilled over into unexpected sectors. Market research firm Gartner Inc. suffered its biggest-ever one-week drop after cutting its revenue forecast, with analysts suggesting AI-powered alternatives could undercut its business model despite the company’s own AI investments.
Historical precedent looms large, with Bloomberg News noting that past technological shifts — from the telephone to the automobile to Netflix — have wiped out incumbents. Now, strategists warn that any service AI can do “faster and cheaper” could be rendered obsolete.
Not all is bleak: some companies, like Duolingo Inc., have leveraged AI to grow, with its stock doubling over the past year. Still, analysts say the winners-and-losers divide in 2025’s market is increasingly shaped by AI’s advance. Microsoft, Meta, Alphabet, and Amazon are expected to spend a combined $350 billion on capital projects this year — much of it on AI infrastructure — while traditional advertising, staffing, and creative service models face growing threats.
“Wall Street clearly has the jitters,” said Phil Fersht, CEO of HFS Research. “This is going to be a tough, unforgiving market.”
