AI Disruption Sparks Exodus from Vulnerable Stocks

Artificial intelligence is reshaping US financial markets with unprecedented speed. Nvidia Corp. now stands as the world's most valuable company at nearly $4.5 trillion, while AI startups like OpenAI and Anthropic have secured tens of billions in funding. The technology's transformative power mirrors the internet's disruptive impact, prompting investors to rapidly reposition their portfolios.

Bank of America strategists have identified 26 companies particularly exposed to AI-driven disruption, including Wix.com Ltd., Shutterstock Inc., and Adobe Inc. This basket has underperformed the S&P 500 by 22 percentage points since mid-May, despite initially keeping pace after ChatGPT's 2022 debut. "The disruption is real," says Futurum Group CEO Daniel Newman. "What we anticipated WOULD unfold over five years now appears likely to occur within two."

Service-based businesses with large workforces face particular vulnerability, regardless of their historical performance. While few companies have collapsed outright from AI competition yet, the market is pricing in expected demand destruction across multiple sectors as AI applications proliferate.