Tough day for the AI trade, with many of the key names down 4-8% on Dario’s call to slow AI.

We need to put the conversation of an “AI slowdown” into perspective. We’ve been going at 200 mph, and if everything that Dario recommended comes into play, the speed of AI progress will be dialed back to 195 mph.

There’s no way these companies are going to measurably back off for two reasons: 1) The Prisoner’s Dilemma is in play. If one maintains its pace, the others that dial it back will be at a significant disadvantage. 2) The China-US dynamic is real, and at a minimum, the US has to keep pace with China.

The bottom line: we’re not changing our enthusiasm around investing in AI. Little will change, and these stocks will rally in the future.

PS: Anthropic will still have a blockbuster of an IPO.

Source: Gene Munster