AI chip sell-off is ‘unmoored from fundamentals,’ LYNX says

What happened: The Nasdaq Composite fell 2.6% on Thursday as technology stocks sold off, and LYNX Equity Strategies said the selling was "unmoored from fundamentals." Key numbers: Nasdaq Composite down 2.6%. CPU stocks fell around 8%. Lam Research plunged 12% after earnings and guidance disappointed. 10-year Treasury yield fell nearly 20 basis points in a single session. Note dated Oct. 23. Why it matters: LYNX expects election concerns to overshadow upcoming earnings and sees AI semiconductor valuations as "heavily distorted," with a snapback coming only after the midterm election. Market: +1.3% today ($233.16), +26.1% YTD, 0.6x vol — as of 17:02 UTC Verified: Q3_2026 (Oct 21) EPS $2.20 vs $2.18 est, +0.9% beat; next print ~Jan 20

The Nasdaq Composite fell 2.6% on Thursday as technology stocks sold off, and LYNX Equity Strategies said the selling was "unmoored from fundamentals."

LYNX expects election concerns to overshadow upcoming earnings and sees AI semiconductor valuations as "heavily distorted," with a snapback coming only after the midterm election. Market: +1.3% today ($233.16), +26.1% YTD, 0.6x vol — as of 17:02 UTC Verified: Q3_2026 (Oct 21) EPS $2.20 vs $2.18 est, +0.9% beat; next print ~Jan 20