5 Stocks That Will Collapse Because of AI

2. Unity Software Inc. (NYSE:U)

At the end of December 2025, Unity Software Inc. (NYSE:U) was trading at around $45, but it dropped to nearly $17 by the end of March 2026. This significant decline was mainly due to AI-related fears. Although the stock has begun to recover, it is still trading approximately 44% below its December 2025 levels. The recent recovery appears to be driven by positive news flow in April.

According to a report released on April 13, Goldman Sachs analyst Eric Sheridan increased the firm’s price target on Unity Software Inc. (NYSE:U) from $27 to $29. However, he kept a Hold rating on the stock. The firm’s adjusted price target offers a further 14.8% upside from the current levels.

Earlier, on April 8, Unity Software Inc. (NYSE:U) and Meta Platforms entered into an extended multi-year platform support and enterprise agreement. Under the deal, the company will continue to support META’s VR platform.

Alex Blum, COO, Unity, said:

Meta is the world’s leading VR platform, and we’re proud that Unity powers the majority of its top‑selling VR games. Great content is what makes VR successful. By pairing Meta’s hardware and OS leadership with Unity’s role as the assembly point for interactive content creation, we’re making VR accessible to more developers so they can develop, deploy, and grow their games and business applications on Meta’s VR devices.

Despite the recent positives that have supported sentiment, AI-related risks remain a concern for the company. Increasing AI adoption could reduce demand for traditional development tools. Faster and cheaper content creation may shift developers toward alternative platforms, putting pressure on long-term growth and pricing power.

Unity Software Inc. (NYSE:U) offers a platform for deploying, developing, and scaling games and interactive experiences across personal computers, mobile phones, consoles, and extended reality devices. Its platform provides artificial intelligence solutions. The company also offers Create Solutions and Grow Solutions.