3 Top AI Stocks That Could Crash in 2025
Generative artificial intelligence (AI) has taken Wall Street by storm since the launch of OpenAI's ChatGPT in 2022. However, more than two years on, this hype cycle is getting long in the tooth. Let's discuss why Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Palantir Technologies (NASDAQ: PLTR) could face downside risk as AI excitement potentially fades in 2025 and beyond.Up 421% over the last three years, Nvidia has made itself the standard bearer of the AI industry by selling the graphics processing units (GPUs) that train and run these advanced algorithms. Booming demand allowed it to grow fiscal 2025 third-quarter revenue by 94% to $35.1 billion. That said, there are some early signs that this level of spending is unsustainable.According to MIT professor Daron Acemoglu, AI technology may never be capable of solving problems complex enough to justify its development costs. And the emergence of low-cost, open-source large language models (LLMs) like China's DeepSeek could make it even harder for Nvidia's clients to profit from its astronomical GPU spending. Continue reading
Generative artificial intelligence (AI) has taken Wall Street by storm since the launch of OpenAI's ChatGPT in 2022. However, more than two years on, this hype cycle is getting long in the tooth. Let's discuss why Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Palantir Technologies (NASDAQ: PLTR) could face downside risk as AI excitement potentially fades in 2025 and beyond.
Up 421% over the last three years, Nvidia has made itself the standard bearer of the AI industry by selling the graphics processing units (GPUs) that train and run these advanced algorithms. Booming demand allowed it to grow fiscal 2025 third-quarter revenue by 94% to $35.1 billion. That said, there are some early signs that this level of spending is unsustainable.
According to MIT professor Daron Acemoglu, AI technology may never be capable of solving problems complex enough to justify its development costs. And the emergence of low-cost, open-source large language models (LLMs) like China's DeepSeek could make it even harder for Nvidia's clients to profit from its astronomical GPU spending.
