Why did AI stocks plunge across the board last night? Here’s the reason.
Less than 24 hours after Democrats won control of both the House and Senate, Arizona Representative Ansari posted that on day one in office, she would suspend advanced AI research, regulate this “out-of-control industry,” and ban artificial superintelligence.
The market immediately took it to mean that the new Congress would slam the brakes on AI. The Nasdaq, Nvidia, memory stocks, and optical communications stocks all got hammered, while the Philadelphia Semiconductor Index fell by more than 10% in a single day.
But I’m not too worried.
The actual “Ban Artificial Superintelligence Act” was introduced back in September. It’s still sitting in committee and hasn’t been voted on. One representative’s post doesn’t mean a ban is about to take effect.
More importantly, AI is central to America’s future. Who would joke around with the country’s future at stake?
At most, this is a political move aimed at President Trump. They’ve just won the election, and now they’re talking tough, building their image, and going after political opponents. We’ve seen this kind of show plenty of times before.
In the short term, sentiment could send stocks down for a spell. But over the medium to long term, as long as the U.S. still wants to win this competition, AI won’t really be choked off by its own government. $SNDK $NVDAB
Less than 24 hours after Democrats won control of both the House and Senate, Arizona Representative Ansari posted that on day one in office, she would suspend advanced AI research, regulate this “out-of-control industry,” and ban artificial superintelligence.
The market immediately took it to mean that the new Congress would slam the brakes on AI. The Nasdaq, Nvidia, memory stocks, and optical communications stocks all got hammered, while the Philadelphia Semiconductor Index fell by more than 10% in a single day.
But I’m not too worried.
The actual “Ban Artificial Superintelligence Act” was introduced back in September. It’s still sitting in committee and hasn’t been voted on. One representative’s post doesn’t mean a ban is about to take effect.
More importantly, AI is central to America’s future. Who would joke around with the country’s future at stake?
At most, this is a political move aimed at President Trump. They’ve just won the election, and now they’re talking tough, building their image, and going after political opponents. We’ve seen this kind of show plenty of times before.
In the short term, sentiment could send stocks down for a spell. But over the medium to long term, as long as the U.S. still wants to win this competition, AI won’t really be choked off by its own government. $SNDK $NVDAB
