Investors rethink AI stocks after Alphabet Intel and Nasdaq drop
AI stocks were all the rage, but recent market drops, like Alphabet and Intel taking big hits, have investors rethinking things.
The Nasdaq just had its worst month since March 2025, falling 2.9%, which has everyone a bit on edge about how unpredictable the AI boom might really be.
Investors hedge with puts and CDS
To avoid getting burned, investors are loading up on put options and credit default swaps, basically financial safety nets.
There is also a surge in contracts tied to CoreWeave, signaling extra caution.
Quant trading firm Jump Trading recently launched a trading desk for computing power to spot opportunities and manage risk.
Data centers and privately held neoclouds are getting help from Susquehanna International Group to hedge against chip price swings.
All this shows just how much folks are trying to protect themselves as the Nasdaq takes a hit too.