The Black Swan author Nassim Taleb is warning that Monday’s brutal selloff in Nvidia Corp. is just a taste of what’s in store for investors who blindly piled into Wall Street’s AI-driven stock rally.

"Black Swan" author Nassim Taleb is warning investors about the fragility of wealth concentration in technology stocks, particularly highlighting Nvidia Corp. following its recent 17% decline amid the emergence of DeepSeek's artificial intelligence model.

Nvidia stock shed 17% on Monday and erased $589 billion from its market cap, the worst single-day loss of market value ever, amid panic over DeepSeek.

Taleb said too many investors have been bidding up prices of AI-related stocks without properly knowing details of how it functions. He described technology firms as “gray swans,” as investors underestimate the deviations in prices that are possible in a day.

The Black Swan author Nassim Taleb warns AI stocks investors of future setbacks. He pointed to Monday’s brutal selloff in Nvidia Corp., asserting that the backlash was just a taste of what’s in store for investors who blindly piled into Wall Street’s AI-driven stock rally.

Nassim Taleb warns that Nvidia’s recent crash signifies market fragility, predicting future losses could be two to three times greater. He attributes the sell-off to emerging competition in AI, advising investors to prepare for unexpected market shifts.