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.

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.

"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.

Financial analyst Nassim Taleb predicts further losses for Nvidia (NVDA) after Monday's selloff, warning of a potential market adjustment to reality.

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.

According to Taleb, investors have been overly focused on the narrative that Nvidia's shares would continue to rise as the company maintains its dominance in AI. He described the recent market retreat as "very little" considering the potential risks in the industry.

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.