Zacks Investment Research
Is the AI Boom on the Verge of Cooling? ETF Areas to Play
The artificial intelligence sector is experiencing significant challenges including declining public perception due to job loss concerns, environmental costs, and rogue AI agent incidents. Rising Treasury yields and slowing revenue growth at major AI companies like Anthropic are fueling market volatility concerns. Investors are turning to defensive strategies through cybersecurity ETFs, broad-market index funds, and dividend-growth ETFs to navigate potential AI-led market downturns.
