C3.ai, Inc. (AI) saw its stock price plummet 5.64% in pre-market trading on Monday, as artificial intelligence stocks faced a broad sell-off amid growing economic concerns and geopolitical tensions. The sharp decline in C3.ai's share price reflects a larger trend affecting the AI sector, with investors appearing to flee riskier bets in the technology space.

The sell-off in AI stocks was widespread, with several other prominent companies in the sector experiencing significant drops. BigBear.ai Holdings and AppLovin Corporation both fell 5.6%, while SoundHound AI and Tempus AI declined 5%. Industry giant Nvidia also saw its stock drop 3.5% in pre-market trading, adding to its 18% decline year-to-date.

This sector-wide downturn can be attributed to multiple factors. Firstly, there are growing concerns about a potential global economic slowdown, partly fueled by U.S. President Donald Trump's comments about implementing sweeping tariffs. These tariffs could target all countries, raising fears of increased trade tensions and their potential impact on global economic growth. Additionally, the broader technology sector, including AI stocks, seems to be losing favor as investors move away from riskier assets in the face of economic uncertainty.

As C3.ai and other AI companies continue to navigate this challenging market environment, investors will be closely watching for any signs of stabilization or further volatility in the sector. The current sell-off highlights the sensitivity of AI stocks to broader economic trends and geopolitical developments, underscoring the need for investors to carefully consider the risks associated with these high-growth but potentially volatile investments.