AI Stocks Whipsawed by Competing Visions of Artificial Intelligence

Investor sentiment over artificial intelligence has swung violently between existential alarm and consumer-market optimism, driving hundreds of billions of dollars in and out of AI-exposed stocks over recent weeks. The divergence reflects two sharply opposing narratives that have seized the market: warnings from AI researchers that large language models pose near-term risks to critical infrastructure, against evidence that generative AI consumer products are rapidly monetizing and expanding their reach.