# Tech Stocks Plunge as AI Valuations Reverse

> AI software stock valuations reverse as tech stocks plunge.
- Title: Tech Stocks Plunge as AI Valuations Reverse · The Motley Fool
- Summary: AI software stock valuations reverse as tech stocks plunge. AI software stocks fell 25% after Goldman Sachs reported hedge funds sold AI stocks at the…
- Keywords: ai software, tech stocks, s&p 500, nasdaq composite, dow jones, gold prices, treasury yield, alcoa, fox factory, palantir technologies, ford, netflix
- Source: The Motley Fool — https://fool.com/coverage/stock-market-today/2026/10/16/stock-market-today-oct-16-tech-stocks-plunge-as-ai-software-valuations-reverse
- Author: Josh Kohn-Lindquist
- Published: 2026-10-16T21:49:48+00:00
- Read time: 1 min
- Topics: ai software, tech stocks, s&p 500, nasdaq composite, dow jones, gold prices, treasury yield, alcoa, fox factory, palantir technologies, ford, netflix
## Tech Stocks Plunge
The S&P 500 fell 1.07% to 7,661 as AI-related software stocks reversed, while the Nasdaq Composite plummeted 2.15% to 26,140 on broad technology selling.
## AI Valuations Reverse
Goldman Sachs reported hedge funds sold ai stocks at the second-fastest pace in over a year, pushing neocloud coreweave down 25%.
## Investor Reactions
Apple's foldable iphone duo sold out within minutes, but analysts suggest supply constraints may outweigh demand.
## Key takeaway

AI software stocks fell 25% after Goldman Sachs reported hedge funds sold AI stocks at the fastest pace in over a year.