Tech stocks have taken a tumble in the latter months of 2025, including those of cryptocurrency and AI companies.
According to NBC, Nvidia dropped nearly 4% as of November 4, while Bitcoin fell over 7%. These dips were seen across the market as well. The S&P 500 and Nasdaq dropped 1.2% and 2%, respectively.
This comes on the heels of sentiment that the AI market is being artificially propped up by mutual investments among tech giants.
This has led to ballooning valuations for many AI companies, namely Nvidia. Michael Burry, an investor portrayed in the 2015 movie The Big Short, made bets against Nvidia following its valuation. Goldman Sachs has even commented on the trends.
"There are things that will change sentiment and will create drawdowns, or change the perspective on the growth trajectory, and none of us are smart enough to see them until they actually occur," said Goldman Sachs CEO David Solomon on the trends, per Reuters.
On top of the rocky profitability of AI and crypto investments, they're also environmental minefields.
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As computing demands for both of these technologies climb, so too does their energy use. Some businesses have tried relying on renewable energy sources to meet those needs, while others have sought to support more energy-efficient cryptocurrencies. However, many crypto mining operations have leaned on dirty energy sources, such as coal.
The heat-trapping pollution that data centers are responsible for exacerbates destructive weather patterns and incurs increasing costs on society.
To curb this trend while still advancing AI business interests, Microsoft and Google have made big investments in nuclear power. These advances aren't inherently detrimental, as AI has potential applications in sustainability. For example, it can advance research into fusion power and inform disaster planning.
Some AI and crypto investors have remained confident that there aren't any short-term catastrophic dangers.
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"We should welcome the possibility that there would be drawdowns, 10% to 15%, that are not driven by some sort of macro cliff effect," said Morgan Stanley CEO Ted Pick, per Reuters.
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