AI bubble fears appear to be manifesting in the stock market as mega-cap names lose more than a fifth of their value from record-high levels hit this year.
Leading the AI drawdown is the OpenAI partner Oracle (ORCL), which saw its stock surge to an all-time high of $345.72 after signing a $300 billion deal with the ChatGPT creator.
But since its one-day rally of 43% on September 10th, ORCL has been plunging, trading at $198.76 as of Friday’s close and down more than 42% from its record level.
Another slumping AI name is Palantir (PLTR), a stock that has taken a nosedive after “Big Short” investor Michael Burry revealed that he was bearish on the name. Despite Palantir’s stellar performance for the quarter ending in September, PLTR dropped to as low as $147.56 this week from its record high of $207.52, a nearly 30% decline.
PLTR managed to bounce on Friday and is trading at $154.85.
Meta (META) has also been struggling after printing its all-time high of $796.25 in August. The social media giant has grabbed headlines recently after investors piled in to place $125 billion in bond orders for its $30 billion debt raise. But the stock plummeted to as low as $581.25 this week, an over 27% decline, before slightly recovering on Friday to trade at $594.25.
AMD (AMD) is also deep in bear market territory after skyrocketing to its record high of $267 in late October. The chipmaker delivered monster Q3 2025 results with CEO Lisa Su noting that the total addressable market cap for the AI accelerator segment is now over $1 trillion. Despite the positive developments, AMD dropped to a low of $195 on Friday, representing a nearly 27% decline from its all-time high.
Other AI names that have witnessed steep corrections as late include Tesla (TSLA), Nvidia (NVDA) and Amazon (AMZN). TSLA is down 17% from its 52-week high, while NVDA and AMZN have dropped 15% and 14% from their record levels.
Meanwhile, tech titan Microsoft is down nearly 15% as well from its all-time high, which it hit this year.
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