AI stocks sold off as hedge funds post October losses

The notable signal here is the divergence in interpretation: funds are actively trimming semiconductor and tech exposure, yet major institutions frame the move as positioning cleanup rather than a thesis break. That gap matters because it leaves the AI trade's durability resting on whether profit delivery and financing conditions stabilize, not on sentiment alone. For RWA and tokenized-asset markets, sustained tech risk aversion tends to tighten the appetite for adjacent growth narratives. Whether the selling spreads beyond equities is the open question.