AI Stocks May Face Significant Correction Early Next Year, Warns Dan Niles

PANews posted on X (formerly Twitter). Wall Street investor Dan Niles has expressed caution regarding the current Agentic AI boom, suggesting that AI stocks could experience a significant cooling off early next year. Niles predicts a potential 30% to 50% correction in AI-related stocks, drawing parallels to the average 46% decline of the 'Big Seven' U.S. stocks in 2022. While AI remains a long-term trend, Niles warns that asset prices are not immune to declines, especially in crowded trades where the risk of pullback is heightened.