US Stocks and AI Cryptos Plunge Amid Segment's Rally Concern

2026-02-05 09:29:14

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US stocks of Alphabet, AMD, and Nvidia closed on a low.
AI cryptos saw a fall of 5.75% in their collective market cap.
Concerns about AI rally have been noted as a possible factor.

US stocks of AI-related companies dropped in their last closing. AI cryptos reflected a similar sentiment with a significant plunge across the sector. For US stocks, and AI cryptos to some extent, the decline pertains to investors’ worries.

AI-Related US Stocks Fall

Alphabet, for one, recorded a decline of 2% in its value. This comes days before rolling out its quarterly results. It was later seen regaining earlier losses, but concerns remain about how deep the company will invest in the AI race. Losses also spanned over AMD and Nvidia, both losing almost 17% and 3.4% at the same time, respectively.

The decline for AMD is attributed to investors being disappointed with its forecasted quarterly revenue. Many speculate that the company may be facing difficulties in competing with the likes of Nvidia.

Jed Ellerbroek from Argent Capital in St. Louis underlined that the market is skeptical about stock prices and how they could turn out in the future. For the moment, investors are worried about whether valuations are pricey or within a reasonable reach.

AI Cryptos Drop

While the entire crypto market has faced a massive downturn over the past 24 hours, AI cryptos have not been left behind, considering they have collectively lost 5.75% in their market cap. Top AI tokens, TAO and NEAR, have lost more than 6% each in a single day. Their weekly losses come to over 20% each.

Every possible AI crypto is seen trading red. This goes on to include ICP (-6.67%), FIL (-5.42%), and RENDER (-6.99%).

Price Projections

Kalshi Traders just revised their BTC price prediction, estimating the flagship token to go as low as $60,000 in 2026. According to their post, there is an 80% chance that Bitcoin tokens lose their momentum to this extent. Likewise, AI cryptos could record a set of revised price projections.

TAO, for one, is expected to undergo a correction of 23.33% in the next 3 months. NEAR may surge by 81.20%, but the volatility remains high at 12.86% with bearish sentiments along with an FGI of 14 points. Factors, including, but not limited to, uncertainty over Fed rate cut and upcoming inflation & employment data, may be acting as additional influential components.

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TAO-7.22%

NEAR-6.72%

ICP-8.03%

FIL-8.24%

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