Key Takeaways
- • Goldman Sachs reported that cumulative sell-offs in the Technology, Media & Telecommunications (TMT) sector are nearing $20 billion over the past two weeks, closely mirroring the $23 billion sell-off seen in July.
- • Despite the S&P 500 dipping only about 2.4%, the risk appetite indicator has reached a record low, signaling cautious investor sentiment toward AI-linked technology stocks.
- • NVIDIA (NVDA) is trading at $216.00 against a GuruFocus GF Value of $418.14, implying the stock is about 48.3% undervalued on that proprietary model.
- • NVDA's P/E (TTM) of 27.3x compares with a 5-year median P/E of 55.49x, while its valuation rank of 4/10 flags pricing concerns.
- • Among 33 gurus holding NVDA, 12 added to positions and 20 trimmed, and insiders sold approximately $967.6 million in stock over the past three months.
Summary
AI-related technology stocks are facing funding pressure as hedge funds reduce exposure, according to a GuruFocus report dated October 27, 2026. Goldman Sachs reported that cumulative sell-offs in the Technology, Media & Telecommunications sector have approached $20 billion over the past two weeks, a pace closely mirroring the $23 billion sell-off recorded in July. The broader S&P 500 declined only about 2.4% over the same period, while the risk appetite indicator reached a record low, a signal of cautious positioning among investors.
NVIDIA Corp, which operates in the semiconductors industry and is central to the AI infrastructure buildout, is under scrutiny. The company, with a market capitalization of approximately $5.21 billion as cited in the article, is known for graphics processing units used in gaming, data analytics and autonomous vehicles. GuruFocus's proprietary GF Value of $418.14 implies the shares are undervalued by about 48.3% relative to the $216.00 price. The article notes the P/E (TTM) of 27.3x sits well below the stock's 5-year median of 55.49x. GuruFocus also assigns NVDA a GF Score of 96/100, with profitability and growth each rated 10/10, financial strength 9/10, and valuation 4/10, the latter flagged as a possible value-trap risk.
Institutional and insider activity is mixed. Of 33 gurus tracked by GuruFocus holding NVDA, 12 added to positions in recent quarters while 20 trimmed. Insider selling totaled approximately $967.6 million over the past three months. The article characterizes the signals as reflecting confidence in NVIDIA's growth potential alongside caution given its current valuation and insider sales.
NVIDIA Corp, which operates in the semiconductors industry and is central to the AI infrastructure buildout, is under scrutiny. The company, with a market capitalization of approximately $5.21 billion as cited in the article, is known for graphics processing units used in gaming, data analytics and autonomous vehicles. GuruFocus's proprietary GF Value of $418.14 implies the shares are undervalued by about 48.3% relative to the $216.00 price. The article notes the P/E (TTM) of 27.3x sits well below the stock's 5-year median of 55.49x. GuruFocus also assigns NVDA a GF Score of 96/100, with profitability and growth each rated 10/10, financial strength 9/10, and valuation 4/10, the latter flagged as a possible value-trap risk.
Institutional and insider activity is mixed. Of 33 gurus tracked by GuruFocus holding NVDA, 12 added to positions in recent quarters while 20 trimmed. Insider selling totaled approximately $967.6 million over the past three months. The article characterizes the signals as reflecting confidence in NVIDIA's growth potential alongside caution given its current valuation and insider sales.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.