AI chip selloff looks like a forced hedge fund unwind
As seen on the 24/7 Wall St. homepage on November 8, 2026.
Borgeat frames the AI-chip drawdown as a forced hedge fund unwind rather than a verdict on AI demand. In 1998, that kind of deleveraging was followed by a violent melt-up.
It is 1998 all over again. This time it is not LTCM. It a whole bunch of HFs. Remember what happened thereafter? Yup… https://t.co/PVp7aK8mj0 https://t.co/ylYo1J2eIt [Quoted @ThierryBorgeat]: AI Semis Plummeted. The AI Boom Did Not. 19 Stocks to Consider. It is time to prepare accordingly. $SOXX Read here: https://t.co/t03hAR5hsr https://t.co/6J8nBRDyT2
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Thierry Borgeat posted on November 8, 2026 that the current pressure on AI semiconductors resembles 1998, driven by what he describes as a broad hedge fund unwind, with a cluster of funds deleveraging at once rather than a single blowup like Long-Term Capital Management.
The 1998 comparison carries a specific implication that Borgeat leans into directly. The LTCM crisis and the forced selling that surrounded it were followed by a sharp recovery once the deleveraging ran its course, a dynamic he gestures at with a pointed 'Yup' rather than spelling it out.
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His framing separates the AI semiconductor trade from the AI demand story itself. The quoted post he attached argues that while AI semis have plummeted, the AI boom has not, and names 19 stocks to consider in that environment, with SOXX as the index in focus.
The post drew 22 likes from roughly 3,800 impressions, modest reach but the kind of engagement that suggests the thesis is resonating with a core audience of market participants. Whether the unwind is actually exhausted is the question the 1998 analogy leaves deliberately open.
Mentioned: SOXX