Investors move from firms at risk of AI disruption

The rise of artificial intelligence in recent years has driven valuations of companies like Nvidia and OpenAI to record highs, while erasing billions in market value from firms seen as vulnerable.

AI has propelled Nvidia to a nearly $4.5 trillion valuation and fueled about $350 billion in combined capital spending from Microsoft, Meta, Alphabet, and Amazon this year.

What is happening?
Companies such as Wix, Shutterstock, Adobe, and ManpowerGroup have tumbled this year as investors brace for AI to automate tasks from graphic design to staffing. These firms are among the 26 companies at most risk from AI, according to Bank of America strategists.

Shares of Wix.com and Shutterstock are each down at least 33% in 2025, while Adobe has fallen 23% amid fears that AI-generated images and videos will replace traditional creative tools.

Staffing firms ManpowerGroup and Robert Half have plunged 30% and over 50%, respectively.

Advertising giants Omnicom and WPP also face threats from Meta’s push to automate ad creation.

Meanwhile, hedge fund firm Situational Awareness, which focuses on AI-linked stocks such as semiconductor, infrastructure, and power companies, now manages over $1.5 billion.

Founded by ex-OpenAI employee Leopold Aschenbrenner, 23, the company also invests in AI startups, such as Anthropic.

Aschenbrenner is part of a wider wave. Value Aligned Research Advisors launched an AI fund in March, which has already reached $1 billion. Steve Cohen’s AI-focused Turion fund now manages over $2 billion and is up 11% this year.

Experts observe that while AI is a hot market now, hedge funds often converge on the same bets, like Vistra, a power supplier for AI data centers.