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AI stocks just lost $5 trillion - but history says the stock market's sweetest stretch starts now

Yahoo Finance • November 1, 2026 • business

Key Points:

Major AI and chip stocks have collectively lost about $5 trillion in market value since early October, with Nvidia and Alphabet each dropping around $835 billion, and Intel losing nearly half its value this month.
Despite this, the broader US stock market has been resilient, with 9 of 11 S&P 500 sectors rising about 1% or more in the same period, a rare occurrence since 1999.
Market analyst Jeff Hirsch views the sell-off as a buying opportunity, citing historical trends where the S&P 500 and chip stocks have typically rallied strongly from midterm election year Octobers through the following June.
The iShares Semiconductor ETF (SOXX) experienced a sharp dip in October but closed above a key support level, suggesting a potential bear trap and signaling a possible rebound in the sector.
However, some investors remain cautious, waiting for clearer signs of recovery before increasing exposure to AI and semiconductor stocks.

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