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AI Slump Stems From Conflated Return Thesis, Plato’s Allen Says

Bloomberg Technology Friday 06 November 2026, 04:14 UTC By Bloomberg News 1 min read
Key Points

AI Slump Stems From Conflated Return Thesis, Plato’s Allen Says Thursday’s market selloff was the result of investors conflating the transformational potential of artificial intelligence with the investment return thesis, said David Allen, head of long/short strategies at Plato Investment Management. The Nasdaq 100 sank 6.4%, wiping out $2.3 trillion in value as investors bailed from US technology shares on speculation that congressional Democrats will clamp down on the AI industry.

AI Slump Stems From Conflated Return Thesis, Plato’s Allen Says Thursday’s market selloff was the result of investors conflating the transformational potential of artificial intelligence with the investment return thesis, said David Allen, head of long/short strategies at Plato Investment Management. The Nasdaq 100 sank 6.4%, wiping out $2.3 trillion in value as investors bailed from US technology shares on speculation that congressional Democrats will clamp down on the AI industry.
Plato (PERSON) Allen (PERSON) David Allen (PERSON) Plato Investment Management (ORG) US (LOCATION) Democrats (ORG)
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