Wall Street Shaken by Potential AI Disruption

Stocks of companies seen as AI losers plummet amid worries about the technology's impact on the economy

Feb. 24, 2026 at 8:50am

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Global shares were mixed on Tuesday after heavy selling of stocks in companies that could be negatively impacted by the rise of artificial intelligence (AI) hit Wall Street. A report by Citrini Research warning of a potential 'deflationary spiral' as AI disrupts the 'human-centric consumer economy' sparked the sell-off, which saw major losses for cybersecurity firm CrowdStrike and software company AppLovin. However, chip makers and other AI-focused firms saw gains, with South Korean tech giants Samsung Electronics and SK Hynix among the top performers.

Why it matters

The AI boom is causing significant disruption across industries, with concerns that the technology could automate many jobs and fundamentally reshape the economy. The sell-off highlights investor jitters about which companies and sectors may be the biggest losers as AI becomes more prevalent, raising questions about the policy response and potential economic fallout.

The details

The sell-off was triggered by a report from Citrini Research that outlined a scenario in which AI's dominance leads to the 'withering away' of the 'human-centric consumer economy,' with dire consequences for employment. This sparked heavy selling of stocks in companies seen as potential AI losers, including cybersecurity firm CrowdStrike, which fell 9.8%, and software company AppLovin, which dropped 9.1%. However, chip makers and other AI-focused firms saw gains, with South Korean tech giants Samsung Electronics and SK Hynix among the top performers.

  • On Monday, U.S. stocks slumped after President Donald Trump ramped up his newest tariffs.
  • Tuesday will bring President Donald Trump's State of the Union address.

The players

Citrini Research

A New York-based financial services company that issued a report outlining a future scenario in which AI's dominance causes the 'human-centric consumer economy' to wither away with dire consequences for employment.

CrowdStrike

A cybersecurity firm that saw its stock fall 9.8% amid concerns about AI-powered competition.

AppLovin

A software company that saw its stock drop 9.1% due to worries that AI competition will steal customers and fundamentally reset their industry.

Samsung Electronics

A South Korean tech giant that saw its stock jump 3.6% as a beneficiary of the AI boom.

SK Hynix

Another South Korean chipmaker that closed 5.7% higher as investors bet on its AI-related prospects.

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The takeaway

The AI boom is causing significant disruption across industries, with investors increasingly worried about which companies and sectors will be the biggest losers as the technology becomes more prevalent. This sell-off highlights the need for policymakers to develop a comprehensive plan to address the economic and employment challenges posed by AI's rapid advancement.