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Fefe Demeny warns that AI stocks could experience a sharp decline as major AI companies have simultaneously called for a slowdown in AI development over the weekend.
Demeny adds that risk-off sentiment may dominate, particularly if the U.S. Federal Reserve hikes interest rates or signals future rate increases at its meeting on Wednesday.
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Earlier this month, Fefe Demeny described a scenario in which several bullish factors drove Bitcoin and altcoins higher, cautioning that bearish investors could be left behind in the rally. Details of this view appeared in a previous article. Demeny’s recent comments on AI mark a shift in focus to potential risks facing technology shares.