This week, AI-driven trading faced challenges as new U.S. tariffs on tech imports sparked market volatility. Investors shifted focus to AI stocks like Nvidia and Taiwan Semiconductor, which dropped over 25% but are seen as long-term buys due to strong growth forecasts. Meanwhile, ETFs like iShares Future AI & Tech ETF (ARTY) and iShares Semiconductor ETF (SOXX) gained attention for offering diversified AI exposure despite a 7% weekly decline.

Alphabet (Google) shares fell 20% this year as AI chatbots like ChatGPT threatened its search ad dominance. However, Google is investing $75 billion in AI to improve its Gemini models and keep users engaged. In India, Affle India rose 15% in a month by using AI to target ads on premium devices.

Palantir Technologies, an AI data analytics firm, dropped 30% from its peak but remains up 274% over 12 months. Experts caution its high valuation (157x earnings) may not justify growth rates. Markets await March CPI data and Big Bank earnings (like JPMorgan) Friday to gauge AI’s role in economic trends.