10 Stocks With Massive Losses; AI Firms Not Spared

Ten big names mimicked a broader market pessimism on Friday after finishing in the red, as investors generally unloaded portfolios to minimize risks from potential uncertainties during the long weekend.

Among Wall Street’s main indices, the tech-heavy Nasdaq fell the hardest, down 1.15 percent, followed by the S&P 500 with a 0.64-percent gain. The Dow Jones dropped by 0.20 percent.

Indices aside, these 10 stocks led Friday’s drop, with a number of AI companies notably joining the list. In this article, we elaborate on the reasons that dragged their prices down.

To come up with the list, we considered the stocks with at least $2 billion in market capitalization and 5 million shares in trading volume.

Stock market charts. Photo by Kaboompics.com on Pexels

10. Nebius Group NV (NASDAQ:NBIS)

Nebius Group dropped its share prices by 5.16 percent on Friday to close at $68.32 apiece as investors took a cautious stance and rebalanced their portfolios amid warnings of an AI bubble.

This followed comments from OpenAI CEO Sam Altman earlier this month that the AI industry could already be entering a bubble, given the unsustainable heavy investments in the sector.

His warning triggered a sell-off among firms riding the AI wave, as investors feared that it could be a repeat of the “dot com” bubble in the 90s that led to a market crash after investors poured funds into companies with unsustainable business models.

An AI bubble poses significant implications to companies riding the boom, and Nebius Group NV (NASDAQ:NBIS) is especially exposed to such risks, particularly if returns on AI investments fail to materialize, as demand for cloud services and high-performance computing could decline and thus lead to underutilized AI infrastructures.

However, even with Friday’s drop, shares in Nebius Group NV (NASDAQ:NBIS) still increased by 25.5 percent in August alone.

9. Oklo Inc. (NYSE:OKLO)

Shares of Oklo Inc. declined by 5.46 percent on Friday to end at $73.64 apiece as investors resorted to early profit-taking while parking funds to mitigate risks from potential uncertainties that could arise during the long weekend.

Earlier this week, Oklo Inc. (NYSE:OKLO) received a “buy” recommendation and a whopping price target of $92 from Bank of America, given its capability to deliver fully wrapped and bankable power purchase agreements while retaining full independent power producer economics.

BofA said it expects Oklo Inc. (NYSE:OKLO) to achieve 13 percent of unlevered IRR for its first 75 MW projects, while next deployments could hit 26 percent IRRs through supply chain scale and cost efficiencies.

Looking ahead, BofA expects the nuclear firm to deliver 60 percent in EBITDA margins, far beyond the mid-teen levels typical across the sector.

In recent news, Oklo Inc. (NYSE:OKLO) signed a memorandum of understanding with ABB, a global leader in electrification and automation, to commission a digital monitoring room at its headquarters in Santa Clara, California.

The monitoring room, equipped with ABB technology, will anchor Oklo’s operator training and simulation center and reflect continued progress toward fleetwide deployment of its Aurora powerhouses.