The Worst Day for Silver in 46 Years Serves as a Warning for the Stock Market's 2 Hottest Trends: AI and Quantum Computing

Over the last three years, the bulls have ruled the roost on Wall Street. All of the stock market's major indexes have climbed to several record highs, with game-changing innovations and hot trends leading the way. This includes the rise of artificial intelligence (AI), the advent of quantum computing, and the precious metals bonanza that saw silver and gold catapult to all-time highs.

But when things seem too good to be true on Wall Street, they often are. It's a lesson silver investors learned firsthand last week, and it's a plain-as-day warning for AI and quantum computing stock investors going forward.

Image source: Getty Images.

Silver's worst day since March 1980 offers a stark warning to investors

Although AI and quantum computing have dominated investing headlines, it's silver that's delivered the outsize returns over the last year. Before the wildest trading session precious metal investors have witnessed in 46 years on Jan. 30, silver futures were approaching a nearly 300% return over the trailing year.

There are certainly fundamental catalysts that have fueled this rally. For example, precious metals can be driven higher by supply and demand. Silver is a critical component used in solar panels and batteries for electric vehicles. As renewable energy usage proliferates, demand for this lustrous metal is expected to climb.

Both gold and silver were also clear beneficiaries of a rapid rise in U.S. money supply during and after the COVID-19 pandemic. Gold and, to a lesser extent, silver are viewed as stores of value amid a seemingly ever-growing money supply. Whereas the physical allocation of gold and silver on planet Earth is finite (i.e., we can't create any additional gold or silver), U.S. dollars are continually printed by the U.S. Treasury Department, based on the Federal Reserve's prevailing monetary policy.

But these fundamental factors took a back seat to something far more dangerous over the last two months: the fear of missing out, or FOMO. Watching others succeed and make money as an asset appreciates compels some investors to join in. From late November through the early morning hours of Jan. 30, FOMO helped lift silver futures from around $50 per ounce to a peak of nearly $122 per ounce.

A replay of the 30% crash on Silver pic.twitter.com/q2vxMiU6zK

-- Goshawk Trades (@GoshawkTrades) January 31, 2026

On Friday, Jan. 30, the wheels fell off the proverbial wagon. Silver futures plummeted 31% in a single session, marking the worst day for this lustrous metal since March 1980. While some posters on social media platforms and stock message boards incorrectly blame manipulation or point to President Donald Trump's nomination of Kevin Warsh to be the next Fed chair as the catalyst behind silver's historic tumble, the FOMO bubble popping concisely explains this move.

While expanding U.S. money supply and growing demand for physical silver will both work in its favor over the long term, a greater than 140% move upward in a span of 10 weeks was never going to be sustainable. This very same FOMO serves as a warning for Wall Street's two other hot trends: AI and quantum computing.

Image source: Getty Images.

Investors consistently overestimate the optimization rate of game-changing technologies

It's not hard to understand why investors are so attracted to AI and/or quantum computing. Analysts at PwC believe artificial intelligence can create more than $15 trillion in economic value by 2030, while Boston Consulting Group foresees quantum computing adding $450 billion to $850 billion in global economic value by 2040. These are sizable addressable markets that can result in a laundry list of winners.

There have been several eye-popping winners from these game-changing technological trends. AI data mining specialist Palantir Technologies (NASDAQ: PLTR) briefly became the 19th-largest publicly traded U.S. company and has rallied close to 2,200% since the beginning of 2023. Palantir uses AI and machine learning across both of its core operating platforms, Gotham and Foundry.

Meanwhile, a quartet of pure-play quantum computing stocks have skyrocketed. As of mid-October 2025, trailing 12-month returns for IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), and Quantum Computing Inc. (NASDAQ: QUBT) reached up to 6,200%! The prospect of specialized computers solving complex problems that classical computers can't tackle is resonating with investors.

But previously hyped technologies all share a common link: investors overestimating the adoption, utility, and/or optimization rate of said technology.

Adoption hasn't been an issue for AI, with infrastructure sales properly described as "otherworldly." However, artificial intelligence solutions aren't particularly close to being optimized. It'll probably take years before businesses maximize their sales and profits following their aggressive investments in AI. This means Palantir's price-to-sales ratio of nearly 100 isn't sustainable.

Quantum computing fails on both ends of the spectrum. On the one hand, IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. are still in the very early stages of commercializing their specialized computers and services. Additionally, Wall Street analysts expect it'll take many years before quantum computers can solve practical problems more cost-efficiently than classical computers.

Investors' expectations for AI and quantum computing have outpaced the optimization rate of both technologies. While this hasn't stopped FOMO from playing a role in lifting the tide for highfliers like Palantir, IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc., history teaches us that such moves aren't sustainable.

The worst day for silver in 46 years serves as a reminder of how dangerous FOMO can be -- and it points to the growing likelihood of an eventual bubble-bursting event for AI and quantum computing.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ and Palantir Technologies. The Motley Fool has a disclosure policy.