This trucking company is AI's latest casualty, as its stock suffers worst day in more than 6 years

By Claudia Assis

C.H. Robinson's stock drops more than 14%, among the S&P 500's biggest decliners, less than a week after closing at a record high

C.H. Robinson's stock is the latest AI victim.

Shares of C.H. Robinson Worldwide on Thursday were hit with their steepest drop in more than five years, as investors seemed to focus their fears about AI disruption onto the transportation and logistics company.

C.H. Robinson's stock (CHRW) tumbled 14.5% for its lowest close since Jan. 8 and its largest one-day percentage loss since Oct. 30, 2019, when it fell 14.85%.

Others in the trucking space suffered similarly. Shares of trucking broker RXO (RXO), which was spun off from transportation company XPO (XPO) in 2022, sank 20%, while Expeditors International of Washington shares (EXPD) shed 13% and J.B. Hunt Transport Services (JBHT) shares gave up 5%.

The Dow Jones Transportation Average DJT slumped 4%, for its biggest one-day selloff in nine months. Seventeen of its 20 components fell, losing a combined $17.4 billion in market cap. Its sister index, the Dow Jones Industrial Average DJIA, fell 1.3%.

It seemed that "AI disruption [is] taking the next victim," Jefferies analyst Stephanie Moore said.

Several industries, notably the software sector in recent sessions, have taken the brunt of investors' concerns about AI, with their stocks falling accordingly.

"Anything knowledge-based is susceptible, and so are the transport companies that are more about the planning and less about the actual moving stuff," said Steve Sosnick at Interactive Brokers.

C.H. Robinson shares had been on a roll until the AI fears surfaced. The stock had run up 21.3% in January, the best monthly performance since it climbed 21.7% in May 2024, even after company reported mixed fourth-quarter results in late January. The rally continued until the stock closed at a record $200.59 on Feb. 6.

The company issued a statement late Thursday to rebuff what it called "perceptions of artificial intelligence ... influencing recent market activity."

"C.H. Robinson has been a leader in AI for more than a decade and we believe AI will only continue to strengthen our performance and widen our competitive moat. We remain confident in our strategy and continue to execute on our disciplined share repurchases from the past year," the company said.

The AI fears appear to have been stoked by a couple of claims by Algorhythm Holdings, a Florida-based holding company that says it builds AI platforms and until recently was better known for its karaoke machines.

On Thursday, Algorhythm Holdings (RIME) said that its SemiCab platform, which the company says uses AI, is enabling its "customers' internal operations to scale freight volumes by 300% to 400%" without additional employees.

And on Monday, the company claimed that the platform had shown a 70% reduction in empty trucking miles, based on what the company called a white paper.

While the Monday news might seem old to be referenced for a Thursday stock selloff, Evercore ISI analyst Jonathan Chappell said that was "the best and only reason" he had heard of so far to explain the weakness.

Algorhythm Holdings in August completed the sale of its Singing Machine karaoke business for $4.5 million.

Joseph Adinolfi contributed.

-Claudia Assis

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02-12-26 2342ET