Tech’s 11% sell-off lowers AI stock prices, but leaves the valuation question open

Mega-cap technology stocks fell about 11% in October while the rest of the S&P 500 rose nearly 6%, according to Investing.com. Money moved into value, energy and financial stocks as investors sold technology shares.

The pullback reached companies that supply chips and servers. Custom silicon designer Marvell Technology (NASDAQ: MRVL) fell 36.8%, server supplier Dell Technologies (NYSE: DELL) declined 27.3%, and semiconductor maker Advanced Micro Devices (NASDAQ: AMD) dropped 23.7%, Investing.com reported. Its market and financial data were as of Nov. 4, 2026.

Forecasts call for $600 billion in annual free cash flow by 2030

Investing.com attributed the technology sell-off to pressure from dwindling cash flows and a rising long-run cost of capital. It did not provide valuation multiples for the group or quantify how much either factor contributed to the decline.

The outlet cited consensus estimates that the Magnificent Seven’s combined free cash flow would climb from roughly $200 billion to $600 billion by 2030. The latter figure is a forecast of annual cash flow, not cash the companies have already generated. It would represent a threefold increase over about four years.

Investing.com argued that AI infrastructure capacity was already operating and being paid for, and that companies needed time to turn current revenue into longer-term returns. It did not estimate when technology shares might regain their all-time highs.

November rebalance exited two consumer holdings

The technology decline also prompted changes in an InvestingPro stock-picking strategy. Its Mid-Cap Movers portfolio sold two consumer holdings in a November rebalance and added two technology companies, according to Investing.com.

The strategy exited PVH Corp. (NYSE: PVH) after holding the shares for 31 days, recording an 18.9% total return. Investing.com said the sale came as momentum softened and liquidity thinned. PVH’s annual revenue growth was near negative 1.6%, while revenue fell 3% in the latest quarter and guidance was muted.

The outlet also reported an approximately 4% contraction in earnings before interest, taxes, depreciation and amortization, or EBITDA. A headline earnings beat had been supported by a one-time $107 million tariff refund. Average daily trading volume had fallen below 1 million shares, Investing.com said.

The portfolio also sold Fortune Brands Innovations (NYSE: FBIN) after 31 days, for a 16.2% total return. Investing.com cited lagging momentum and margin pressure. The shares were down 9% for the year and traded at about 69% of their 52-week high, while trailing EBITDA had declined roughly 19% and the company had lowered its full-year outlook.

Fortune Brands’ latest quarterly free cash flow nevertheless rose about 50% to $179 million, and its security segment grew, the outlet reported.

Power Integrations and Intapp joined the portfolio

The two November additions were Power Integrations (NASDAQ: POWI), a power-semiconductor maker, and enterprise software provider Intapp (NASDAQ: INTA).

Power Integrations was up 32.2% for the year, but its shares had retreated to roughly half their 52-week high and traded near $44, according to Investing.com. The company had no debt and held $250 million in net cash. It also had a new strategic partnership targeting AI data centers.

Second-quarter earnings of $0.37 per share beat expectations by about 16%, and operating margin expanded to 17%, the outlet reported. It cited projected forward earnings growth of roughly 49% and an average analyst price target of $71.75, about 64% above the cited share price.

Intapp’s cloud annual recurring revenue rose 28% to more than $515 million, with a net revenue retention rate of 123%. Quarterly free cash flow more than doubled to $28 million, according to Investing.com.

The outlet reported that Intapp shares had rallied about 80% over six months before a recent post-earnings pullback. It put the stock’s fair value at roughly $42 to $43. Intapp’s non-GAAP operating margin expanded to 22%, gross margins exceeded 80%, and its Celeste AI sales pipeline grew 2.5 times in one quarter.

Mid-Cap Movers gained 29.1% over six months

Mid-Cap Movers gained 29.1% over the previous six months, compared with a 0.6% rise for the S&P MidCap 400, an advantage of 28.5 percentage points, Investing.com reported. Since launch, the strategy returned 113.3%, exceeding its benchmark by 57.8 percentage points.

The outlet said its Tech Titans portfolio had its worst monthly performance of the year during the October sell-off. Since launch, Tech Titans had returned 166.1%, while Healthcare Heroes had returned 61.2%.