GE Vernova, CG Power, other power capex stocks tumble up to 16% in 2 days amid global AI caution. What’s ahead?

Shares of power capex stocks such as Hitachi Energy India, CG Power, GE Vernova and others fell up to 16% over two sessions after OpenAI and Anthropic leaders called for a slowdown in AI development to manage risks and protect humanity.

GE Vernova T&D India shares fell nearly 9% over the two sessions, while CG Power declined 8%. Hitachi Energy shares were down around 6%, while Sterlite Tech and HFCL tumbled 10% each. TD Power Systems shares crashed 16% during the period.

These stocks have rallied sharply in recent months, gaining up to 63% in 2026 so far, amid expectations of rising demand for power generation, transmission and distribution to support India’s data centre boom.

Also read | Rs 1.13 lakh crore boom in one corner, a bust in another: What changed in the AI trade?

AI slowdown calls

Anthropic CEO Dario Amodei in a long X post on Saturday, ‌called on AI companies to slow the rate at which they advance model capabilities amid mounting fears of misuse of artificial intelligence. The Anthropic CEO wrote that in nearly a year, AI agents “could be capable of taking over the entire internet, potentially causing hundreds of billions of dollars in damage.”

World’s richest man Elon Musk, who runs xAI, as well as OpenAI CEO Sam Altman said that they agree with Amodei. “Dario is right…I have been sounding the alarm on AI for a long time,” Musk said in a streak of posts.
OpenAI CEO Sam Altman in a series of posts noted that AI companies should pace the AI frontier, and that this has been the primary topic of discussions at the ChatGPT-maker in the recent weeks. “There are two ways AI progress could go very badly and that we must avoid. First, we could lose control of the future to AI…Second, we could end up in a world with too much concentration of power…Avoiding these two threats requires walking a narrow middle path; for example, one country could gain too much power. Another example is one lab ending up with too much power,” he wrote.

AI bubble worries

While artificial intelligence has brought in a new wave of technological innovations, it also brought in concerns around the excessive optimism around it, with analysts even doubting if it is just a bubble ready to be popped and wreak havoc on the financial market.

Earlier this year, popular American investor Michael Burry wrote on a Substack post that he sees many indicators, both technical and fundamental, lining up for the same conclusion as the Dotcom crash. “1999 went where no market had gone before, and I would say so can this one…It is already there on a number of indicators,” he said, arguing that massive venture capital flows, rising AI debt issuance, and extreme market optimism are creating conditions where valuations may detach from economic reality.

Also read | Michael Burry pulls back on risk, says he’s happy to sit on cash. Is Big Short investor reversing his bearish AI bets?

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.