Micron, Nvidia, AMD stocks at risk as Anthropic, OpenAI leads push to slow AI growth

Top artificial intelligence (AI) stocks like Micron, Nvidia, AMD, and other firms like SanDisk and Western Digital will be in focus as concerns about the industry rose after Anthropic’s Dario Amodei urged a slowdown to AI model development.

Anthropic’s CEO called to slow AI development

Nvidia stock ended the week at $218, down from the month-to-date high of $234. Similarly, Micron dropped to $975 from the year-to-date high of $1,253, while AMD was trading at $516. Other top companies like SanDisk, Western Digital, and Oracle have also come under pressure.

In a long post, Dario Amodei, Anthropic’s CEO, urged that companies should slow down the rollout of AI models. Other top leaders, including OpenAI’s Sam Altman and Elon Musk have also supported the move. 

Fears of the impact of the ongoing AI race have rose in the past few days after an Anthropic employee resigned, citing the dangers of the ongoing race to have the best models. In his statement, he warned that unchecked AI growth will likely lead to human extinction in the next few years. 

In another major announcement, Anthropic said that it had identified Houthi members conduct research on biological weapons using its platform. At the same time, there are concerns that the AI growth will lead to more cyberattacks. Just recently, OpenAI said that a rogue agent had hacked Hugging Face. 

Meanwhile, President Barrack Obama said that Democrats should increase their focus on the AI industry ahead of the election. He believes that Democrats will stand a better chance of winning if they highlight the dangers of AI. This is a sharp contrast to President Trump who has pressed the US to increase its data center rollout.

Impact of these statements on AI companies

Top AI stocks will likely retreat as investors react to the warnings from these top AI companies. 

However, in reality, chances are that the AI growth will likely continue because of its competitive nature. For one, in addition to American companies, top Chinese firms like DeepSeek and Moonshot are attempting to gain market share. 

Therefore, GPU companies like Nvidia and AMD will likely continue seeing strong growth in the foreseeable future. The same is true with memory companies like Micron, SanDisk, and Western Digital. 

Indeed, analysts expect that their revenue growth will continue growing. Analysts see Nvidia’s annual revenue surging to over $411 billion this year followed by $700 billion next year. In most cases, Nvidia normally does better than expected, meaning that its revenue will be higher than that.

AMD’s annual revenue growth is expected to be 46% this year to $46 billion followed by $61 billion next year. Micron’s annual figure is expected to be over $130 billion and $244 billion.

At the same time, these companies are trading at relatively low valuations. Nvidia has a forward price-to-earnings ratio of 23, while Micron has a multiple of less than 14. These are encouraging metrics considering that the S&P 500 Index has a multiple of 19. Therefore, any potential retreat will likely be brief as the companies have strong fundamentals.