AI Sector Braces for a Volatile November as US Stocks Tumble

US stocks fell sharply last week, with the Nasdaq dropping 3.5 percent on Friday and briefly entering a correction, 10 percent below its early October peak, raising questions about whether the AI boom has peaked. The decline followed disappointing earnings forecasts from Google and Intel, adding to concerns including public opposition to data centers, high AI costs for customers, and the rise of open-source alternatives. A potential Democratic Congress after Tuesday's elections could also threaten the current regulatory environment. The AI sector faces hundreds of billions in investments, with key companies like OpenAI and Anthropic relying on circular financing. OpenAI has delayed its IPO, while Anthropic received a "junk" credit rating ahead of its planned listing, leaving the industry facing an uncertain November.