Image by Nicholas Cappello, from Unsplash
AI Stocks Tumble As Investors Question Returns and Bubble Risks
- Written by Kiara Fabbri Former Tech News Writer
- Fact-Checked by Sarah Frazier Former Content Manager
Investor enthusiasm for artificial intelligence wavered Tuesday as major tech stocks sold off.
In a rush? Here are the quick facts:
- Nvidia fell 3.5% and Palantir dropped nearly 10% on Tuesday.
- Nasdaq declined more than 1.2% amid growing AI investment concerns.
- AI selloff spread globally; TSMC down 4.2%, SoftBank dropped 7%.
The technology sector suffered a decline with Nvidia losing 3.5%, while Palantir fell by nearly 10% after the release of an MIT study showing 95% of companies investing in generative AI generate no financial returns, as suggested by Fortune .
The selloff appears linked to both the MIT report and earlier warnings from OpenAI CEO Sam Altman, who suggested investors could be caught in an AI bubble.
Fortune points out that OpenAI CEO Sam Altman compared current AI market conditions to the 1990s internet bubble where online company valuations skyrocketed before a major collapse.
While the MIT study blamed failures on corporate “learning gaps” and flawed integration rather than the AI models themselves, markets reacted sharply, signaling concerns about AI’s commercial viability. Nvidia, fresh off becoming the world’s first $4 trillion company, sank 3.5%, while Palantir slid nearly 10%, as noted by Fortune.
The Nasdaq’s losses spilled overseas. Korea’s SK Hynix, a key Nvidia supplier, lost 2.9%, and chip giant TSMC slipped 4.2%. SoftBank, long bullish on AI, dropped over 7%. In contrast, Alibaba and Tencent barely moved, and China’s SMIC gained 3%, according to Fortune.
“Tech stocks were under pressure yesterday, led by AI poster child stocks Palantir and Nvidia as investors worry the tech rally is due for a pullback/correction with the constant valuation arguments front and center,” Wedbush analyst Dan Ives said, as reported by Fortune.
“We are still in the early days of the AI revolution as the use cases are just starting to massively expand as more companies recognize the value creation being driven by a handful of tech companies led by the Godfather of AI, Jensen [Huang], and Nvidia,” he added.
High-profile figures have long warned about overvalued AI investments. Bridgewater founder Ray Dalio said, “There’s a major new technology that certainly will change the world and be successful. But some people are confusing that with the investments being successful,” reported Fortune.
Image by Volodymyr Kondriianenko, from Unsplash
Password Managers Leak Data in New Clickjacking Attack
- Written by Kiara Fabbri Former Tech News Writer
- Fact-Checked by Sarah Frazier Former Content Manager
A new study warns that millions of password manager users could be vulnerable to a dangerous browser exploit called “DOM-based Extension Clickjacking.”
In a rush? Here are the quick facts:
- Attackers can trick users into autofilling data with one fake click.
- Leaked data includes credit cards, login credentials, and even two-factor codes.
- 32.7 million users remain exposed as some vendors haven’t patched flaws.
The researcher behind the findings explained : “Clickjacking is still a security threat, but it’s necessary to shift from web applications to browser extensions, which are more popular nowadays (password managers, crypto wallets and others).”
The attack works by deceiving users into clicking on fake elements, including cookie banners and captcha pop-ups, while an invisible script secretly enables the password manager’s autofill function. The researchers explain that the attackers needed only one click to steal sensitive information.
“A single click anywhere on a attacker controlled website could allow attackers to steal users’ data (credit card details, personal data, login credentials including TOTP),” the report states.
The researcher tested 11 popular password managers, including 1Password, Bitwarden, Dashlane, Keeper, LastPass, and iCloud Passwords. The results were alarming: “All were vulnerable to ‘DOM-based Extension Clickjacking’. Tens of millions of users could be at risk (~40 million active installations).”
The tests revealed that six password managers out of nine exposed credit card details, while eight managers out of ten leaked personal information. Furthermore, ten out of eleven allowed attackers to steal stored login credentials. In some cases, even two-factor authentication codes and passkeys could be compromised.
Although vendors were alerted in April 2025, the researchers note that some of them, such as Bitwarden, 1Password, iCloud Passwords, Enpass, LastPass, and LogMeOnce have not yet fixed the flaws. This is particularly concerning since it is leaving an estimated 32.7 million users exposed to this attack.
The researchers concluded: “The described technique is general and I only tested it on 11 password managers. Other DOM-manipulating extensions are probably vulnerable (password managers, crypto wallets, notes etc.).”
