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
WATCH: Cathie Wood of ARK says  software providers will be the next to ride on the artificial intelligence frenzy driven by Nvidia.Source: Bloomberg
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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.