C3.ai, Inc. (AI) saw its stock price plummet 5.36% in pre-market trading on Monday, as artificial intelligence stocks faced a broad sell-off amid growing economic concerns and geopolitical tensions. The drop comes as investors appear to be fleeing riskier bets in the technology sector.
The decline in C3.ai's stock price is part of a larger trend affecting AI-related companies. Other prominent AI stocks also experienced significant drops in pre-market trading, with BigBear.ai Holdings falling 5.6%, AppLovin Corporation down 5.6%, and SoundHound AI and Tempus AI both declining 5%. This sector-wide downturn suggests a shift in investor sentiment towards AI stocks, which have been among the market's hottest performers in recent years.
The sell-off appears to be driven by 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.