Chip sell-off driven by positioning for $75 billion SpaceX IPO
Fundstrat Managing Partner Tom Lee states that the ongoing sell-off in chip stocks is primarily driven by institutional funds liquidating recent winners to raise cash for the upcoming $75 billion SpaceX IPO.
The sell-off is viewed as a healthy consolidation, with the sector’s charts not completely broken.
Lee anticipates a potential pullback later in 2026 driven by the market testing new Fed Chair Kevin Warsh, IPO lockup expirations, and looming energy shortages.