AI Stock Rally Stalls as Nvidia Drops Back Below $1 Trillion
- C3.ai shares tumble 18% after issuing underwhelming forecast
- Some investors see high valuations as a concern after rally
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The rapid rally in tech stocks benefiting from artificial intelligence has stalled as a disappointing outlook from C3.ai Inc. sparked a selloff in AI-exposed stocks.
AI software firm C3.ai fell more than 18% Thursday, extending Wednesday’s drop of 9% on a disappointing sales outlook, and paring its gain for the year to just under 200%. Nvidia Corp. declined 5.7% Wednesday after surging over 30% in three days, after the chipmaker briefly reached a $1 trillion market cap earlier this week.