Tech Stock Selloff Hits 40% in 17 Trading Days, Goldman Sachs Says Driven by Structure, Not Fundamentals

According to Goldman Sachs analysis, the recent severe tech stock selloff is a structural rather than fundamental decline. The momentum factor tracking technology, media and telecom stocks crashed 40% in just 17 trading days, marking the fastest and deepest pullback on record. Goldman Sachs hedge fund executive Mark Wilson attributed the historic sell-off to overcrowded positions and concentrated leverage rather than deteriorating corporate earnings or economic conditions.

The selloff's scale is stark compared to historical norms. South Korea's KOSPI index fell 27%, global memory chip stocks plunged 36%, and AI-related stocks declined 25%. Yet major U.S. banks reported strong earnings this week, corporate lending grew 17% year-over-year, and chipmakers TSMC and ASML raised guidance, with TSMC projecting 2026 revenue growth above 40%. Despite these positive signals, affected stocks declined after earnings announcements, a pattern Wilson said is difficult to explain from fundamentals alone.