AI stocks slide as investors weigh profit-taking after weak earnings

Investors are increasingly worried about the artificial intelligence trade after a week of weak earnings and spending signals, with AI-related stocks falling sharply and some analysts suggesting it may be time to take profits or hedge risk. Anthropic reported a sales deceleration, while Big Tech earnings showed hyperscalers pulling back on capital expenditures, raising doubts about whether returns justify the massive AI buildout. The Global X AI ETF fell 4% this week, down 15% from its summer record, and the iShares Semiconductor ETF is off 29% from its high. Options traders report a shift toward downside puts, though some see growing confidence in AI technology itself, citing new consumer agents like Meta's Muse. Investors are rotating into non-AI stocks like Coca-Cola and Walmart, while Paul Tudor Jones warns the AI buildout's scale may push markets toward a tipping point.