Key Takeaways
- • Lam Research has fallen 36%, Applied Materials 30%, AMD 22% and Nvidia 15% over the past month as hedge funds lock in profits ahead of year-end, according to the primary source.
- • Nomura cross-asset strategist Charlie McElligott describes the selloff as an unwind of 2026's popular thematic stocks.
- • The drawdown in AI-trade names is driven by position reduction rather than a single company-specific catalyst, per the source's framing.
Summary
Leading AI-trade stocks have sold off sharply over the past month as hedge funds move to protect gains accrued during 2026, according to the original report. Lam Research is down 36%, Applied Materials has fallen 30%, AMD has declined 22% and Nvidia has dropped 15% over the period.
Nomura cross-asset strategist Charlie McElligott characterized the decline as an unwind of the year's crowded thematic positions. The move reflects profit-taking ahead of year-end rather than a fundamental reassessment of the sector, as framed by the source. Semiconductor equipment and chip designers have been among the most widely held expressions of the AI theme, which is why their pullback has been pronounced.
The source article is a brief excerpt, and the full text of the analysis was not available in the material reviewed. Readers seeking detail on positioning data, fund names or the duration of the unwind should consult the complete original report.
Nomura cross-asset strategist Charlie McElligott characterized the decline as an unwind of the year's crowded thematic positions. The move reflects profit-taking ahead of year-end rather than a fundamental reassessment of the sector, as framed by the source. Semiconductor equipment and chip designers have been among the most widely held expressions of the AI theme, which is why their pullback has been pronounced.
The source article is a brief excerpt, and the full text of the analysis was not available in the material reviewed. Readers seeking detail on positioning data, fund names or the duration of the unwind should consult the complete original report.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.