Anthropic’s AI warning may weigh on chips, but trade seen intact

Artificial intelligence experts calling for a slower development pace may initially impact chip and supply-chain stocks, but they could have limited long-term effects, market observers suggest. Semiconductor companies and other AI-related stocks could experience an initial sell-off on Monday (Sep 14) as investors evaluate the potential impact of more cautious development.

However, the demand for chips, energy, and computing power continues to outpace supply, which could make any weakness short-lived. Anthropic CEO Dario Amodei announced additional safeguards, including third-party evaluations, and urged the industry to slow the pace of development for advanced models. OpenAI CEO Sam Altman supported the proposal, while xAI's Elon Musk agreed, stating, "Dario is right."

While some investors doubt the latest developments will have lasting effects on the industry, they acknowledge that the technology is still in its early stages. Concerns over the significant investments in AI have affected technology stocks, causing technology-heavy Nasdaq 100 Stock index to drop over 4%, US chip shares to decline 14%, and Asian tech stocks to fall nearly 8%.

Some argue that a slower AI development pace could ultimately benefit the industry by allowing companies more time to recoup costs from existing infrastructure. "The agreement among the three CEOs does not alter the money being spent on chips, power, and infrastructure; in fact, it extends the development timeline," said Billy Leung, an investment strategist at Global X Management.

If commercialization and adoption continue to grow while the pace of new capability slows, it could shift the focus from spending to monetization. Despite the recent market fluctuations, sentiment toward Asian tech firms may improve as investors focus on responsible development, which could lead to increased investments in cybersecurity and AI monitoring tools.