Meta, Alphabet and Microsoft Rise While Nvidia Falls After Three AI Chiefs Call For Slowing Down Frontier Models

Shares of Meta Platforms rose 7.12% over the past week to $660.71, outperforming broader technology peers as markets executed a sharp rotation within the artificial intelligence ecosystem. Investors shifted capital away from AI hardware and infrastructure suppliers into enterprise software and large-scale platform companies seen as less vulnerable to capital expenditure fluctuations. The market realignment was triggered after AI leaders Dario Amodei, Sam Altman, and Elon Musk publicly discussed slowing the pace of frontier AI model development over safety and disruption concerns. The hardware supply chain bore the brunt of the selloff, with Nvidia sliding 8.38% and ASML dropping nearly 10%, while hyperscalers like Meta, Alphabet, and Microsoft demonstrated relative resilience. OpenAI also confirmed it would delay its anticipated initial public offering. Macroeconomic headwinds added further pressure to capital-intensive semiconductor names, as the 10-year Treasury yield reached 4.95% alongside an 85% market-implied probability of a Federal Reserve rate hike. The sustainability of this market rotation will largely hinge on upcoming Federal Reserve policy updates and whether mega-cap tech hyperscalers adjust their multi-billion-dollar capex plans.