AI is Tanking the Stock Market. Why?

The gist

1. Markets moved from debating when AI will disrupt industries to whether companies like pharma and consumer goods survive at all.
2. Investors are cutting price-to-earnings multiples by half or more, dropping from 40x to 20x or 20x to 10x, as a safety buffer.
3. Cost of capital is rising sharply, with required rates climbing from 6% to 12 or 13% to account for AI uncertainty.
4. Revenue multiples are compressing from 10x down to 3x because no one can reliably predict how long traditional cash flows will last.