Goldman Sachs suggests that the recent decline in AI-related stocks represents a market rotation rather than a mass liquidation. Rich Privorotsky, head of EMEA delta-one at the bank, stated on October 13, 2026, that investors are reallocating capital within the AI sector instead of exiting it entirely.
Market volatility intensified following reports of weakness at the Chinese memory manufacturer CXMT around October 12. This triggered declines across the semiconductor industry: the KOSPI index fell 5.5%, Samsung dropped 8%, SK Hynix slid 10%, and Kioxia declined by 13%.
The SOXX semiconductor index faced pressure, potentially marking its sixth consecutive day of losses. Data from futures markets showed a divergence, with Nasdaq futures falling approximately 70 basis points while Russell futures rose by about 30 basis points.
According to Goldman Sachs, hedge funds have reduced broad technology exposure while maintaining positions in select mega-cap stocks. The bank views this shift as a healthy reset, noting that capital is moving from hardware and semiconductors toward software and infrastructure.
