Traders are fleeing stocks that could be negatively impacted by artificial intelligence (AI), with companies like (link unavailable), Shutterstock, and Adobe seeing significant declines. (link unavailable) and Shutterstock are down over 33% in 2025, while Adobe has fallen 23%. These companies are part of a basket of 26 identified by Bank of America strategists as most at risk from AI.
The fear is that AI will disrupt industries, much like the internet did before it. Companies that rely heavily on human labor for tasks that can be automated by AI are particularly vulnerable. Some experts believe that AI could "annihilate" certain pockets of the market or cause extreme disruption.
Web development companies like (link unavailable), digital image companies like Shutterstock, and software makers like Adobe are among those seeing significant declines. Staffing services like ManpowerGroup and Robert Half have also been impacted, with ManpowerGroup down 30% and Robert Half down over 50%. Advertising agencies like Omnicom Group and WPP have seen significant declines as well, with Omnicom Group down 15% and WPP down over 50%.
However, not all companies expected to be impacted by AI are faring poorly. Duolingo, for instance, has seen its stock roughly double over the past year despite offering language-learning services that could potentially be replaced by AI translation services. This is largely due to the company's successful implementation of AI into its strategy.
Meanwhile, big players like Microsoft, Meta, Alphabet, and Amazon are expected to invest around $350 billion in combined capital expenditures this year, up nearly 50% from last year, to build out AI infrastructure. Nvidia, whose chips dominate the AI market, is also benefiting from this trend.
As AI continues to evolve, it's likely that we'll see significant changes in the way companies operate and the way investors approach the market. While some companies may struggle to adapt, others will likely find ways to leverage AI to their advantage.
