An artificial intelligence-powered stock picker that previously outperformed the market is now signaling potential risks in major tech stocks, particularly Nvidia and Tesla. The AI system, developed by Danelfin, combines machine learning with fundamental, technical, and sentiment analysis to generate stock predictions. The system’s AI score for Nvidia has dropped significantly from 9 out of 10 to just 3, suggesting increased risk for the semiconductor giant that has been driving the AI boom. Similarly, Tesla’s score has fallen to 2 out of 10, indicating potential downside risks. The AI model’s predictions are noteworthy given its track record of generating returns that exceeded the S&P 500 by approximately 10% annually since 2012. The system analyzes over 900 factors for each stock and has historically shown accuracy in predicting market movements. The current warnings about tech stocks come amid concerns about stretched valuations and potential market corrections. The AI’s bearish signals for major tech companies suggest investors should exercise caution, particularly with stocks that have seen substantial gains driven by AI enthusiasm. This analysis provides a data-driven perspective on market risks and highlights the growing role of AI in investment decision-making.
Source: https://www.businessinsider.com/market-beating-ai-stock-picker-nvidia-tesla-tech-sell-off-2025-3