Investors Pivot to AI Amid Market Reset
Since November 2022, capital has surged toward AI infrastructure while traditional tech stocks weathered volatility. The S&P 500's 25% drop from January 2022 peaks reversed sharply after ChatGPT's release, igniting a 13% rebound that stalled until early 2024. Inflationary pressures and Fed rate hikes hit megacaps hardest: Nvidia, Meta, and Palantir each lost ~70% at troughs, while Apple and Alphabet shed 30-40%.
OpenAI's valuation skyrocketed from $14B to $500B in 18 months—a trajectory eclipsing most tech unicorns. The AI gold rush now drives capital flows toward data centers, chipmakers, and blockchain-based compute networks. crypto markets mirror this divergence, with AI-linked tokens (FET, AGIX, OCEAN) outperforming during risk-off periods.