'This Selloff Makes Zero Sense': An Analysis from WallStreetBets
Wall Street spent Monday unloading anything AI-adjacent after Anthropic CEO Dario Amodei and a handful of rival lab chiefs called for a slower, safety-first approach to frontier model development. Nvidia Corp. (NASDAQ: NVDA ) fell 3.36%, while Micron Technology Inc. (NASDAQ: MU ) and Intel Corp. (NASDAQ: INTC ) fared worse, sliding 5.25% and 5.59%, respectively. Traders sold first and asked questions later. Naturally, r/WallStreetBets had opinions, and a thread titled “This Selloff Makes Zero Sense” turned into a full-blown referendum on whether Big AI is a genius or a grift. The Bull Case The original poster, u/Billy_Flower, argued the market got the memo backwards: “Slower releases ≠ less compute demand. If anything, more safety means more evals, more redundancy, more security infrastructure and more compute.” Traders elsewhere in the thread piled on with the bond-market angle, which could be valid considering the 10-Year Treasury yield hit 5% on Tuesday. As u/chriberg put it: “The stock market is the bond market’s b—h; the bond market decides whether stocks go up or down, not the other way around." Read Also: SpaceX Stock Faces a Risk That Keeps Coming Back in Waves Of course, t
Wall Street spent Monday unloading anything AI-adjacent after Anthropic CEO Dario Amodei and a handful of rival lab chiefs called for a slower, safety-first approach to frontier model development. Nvidia Corp. 36%, while Micron Technology Inc. (NASDAQ: MU ) and Intel Corp.
59%, respectively. Traders sold first and asked questions later. Naturally, r/WallStreetBets had opinions, and a thread titled “This Selloff Makes Zero Sense” turned into a full-blown referendum on whether Big AI is a genius or a grift. The Bull Case The original poster, u/Billy_Flower, argued the market got the memo backwards: “Slower releases ≠ less compute demand.
” Traders elsewhere in the thread piled on with the bond-market angle, which could be valid considering the 10-Year Treasury yield hit 5% on Tuesday. ” Another comment, u/beofnads, agreed: Nobody in the C-suite admits a bubble out loud. “Bro no one serious ever takes what the seller is saying at face value… Nope they are magically gonna have safety concerns out of the blue,” he said. " Notably, the WSB Parade Marshall echoed the opinion of "All-In" podcast hosts and AI entrepreneurs David Sack s and Chamath Palihapitiya, who frequently cite "regulatory capture" as the frontier models’ likely motivation.
“Rates are about to sky rocket,” u/slick2hold said, widening the lens past AI politics entirely. " Not Everyone Is Buying It Not everyone bought the conspiracy. " Meanwhile u/Albertonectease landed the thread’s bleakest one-liner — “They know the music has stopped and nobody is buying their bull—-t anymore” — before admitting total confusion a few replies later: “Uh.. ” Regulators, a bubble, bailouts, or an actual capability wall?
WallStreetBets cannot agree on the diagnosis. It can agree that the selloff, and the safety talk behind it, smells fishy — and Monday’s tape, red across chips and memory alike, gave both sides fresh ammunition. Read Also: These 10 Stocks Are Squeeze Candidates Waiting to Happen Image: Shutterstock