Investors on Wall Street are purchasing financial protection against a potential AI market collapse, including hedge funds, institutional investors and data‑center operators, after the Nasdaq fell 2.9% on Friday, November 30, in the United States; the move follows concerns that AI‑driven stock valuations could reverse, according to data from Nasdaq and reporting by olhardigital.com.br.

Investors seek protection

Market participants are using put options and credit default swaps to hedge against losses, a trend noted by Stephen Solaka, vice‑president senior of Gateway Investment Advisers, who told The Wall Street Journal that demand for such instruments has risen, as reported by olhardigital.com.br.

Market indicators

The Nasdaq’s 2.9% decline was accompanied by sharp drops in Alphabet and Intel shares, and Oracle’s credit default swap spreads increased by more than one percentage point, indicating broader market concern, according to figures cited by olhardigital.com.br.

Infrastructure providers

Companies that lease chips and compute capacity for AI model development are also exploring hedging strategies to mitigate the risk of reduced demand for computational resources, as described in the original report.