Investors worry as AI companies slow growth

Investors are growing concerned over a key metric as AI companies show a decline in growth rates. While revenue continues to rise, the slowing pace has sparked unease. Sameer Samana, an adviser at the Wells Fargo Investment Institute, noted that AI-linked companies have driven recent stock market gains, and any dip could affect retirement accounts and index funds. Anthropic, which reported its third-quarter results on October 14, saw revenue increase by 45% to $16.8 billion, up from $11.6 billion in the previous quarter. However, this growth rate is lower than the nearly 60% increase between the first and second quarters. Anthropic’s annual revenue for 2025 was $4.6 billion, compared to $386 million in 2024. Samana explained that investor expectations had been for rapid growth, but now the focus is on maintaining a steady pace. AI companies are still growing quickly, but not at the previously anticipated rate, which has impacted stock valuations. The slowing growth rate marks a shift for AI firms. While the first quarter still exceeded the entire 2025 revenue, the trend signals a potential slowdown. Investors are now pricing in a more moderate growth outlook, which has led to increased caution in the market.