ZeroHedge Reports JPM Tech Specialist on Tech Selloff Causes
A JPMorgan tech specialist, as reported by ZeroHedge, attributed today's tech selloff to a warning from Hock Tan about financing bottlenecks and renewed power concerns.
ZeroHedge reported on Tuesday, October 13, 2026, a detailed analysis from a JPMorgan tech specialist regarding the ongoing tech sector selloff.
Adding to the market's unease, a sell-side research note over the weekend rekindled worries about power shortages, suggesting potential deficits of as much as 19GW next year and even more in 2028.
The JPM specialist observed a rotation into 'Mag 7' and Internet names, a pattern typically seen when an open bond market pushes rates higher.
ZeroHedge reported on Tuesday, October 13, 2026, a detailed analysis from a JPMorgan tech specialist regarding the ongoing tech sector selloff. The specialist highlighted several contributing factors, noting that "The most proximate reason seems to be Hock Tan's participation in a panel at a DBS conference in Singapore, where he warned financing could become a bigger bottleneck than component shortages." The report also mentioned Tan's skepticism regarding frontier lab business models and his comparison of "many investors" to casino gamblers.
Adding to the market's unease, a sell-side research note over the weekend rekindled worries about power shortages, suggesting potential deficits of as much as 19GW next year and even more in 2028. This comes amidst a low-liquidity holiday trading day, with Middle East news also contributing to investor caution. The Crypto Fear & Greed Index currently sits at 57, indicating 'Greed,' but the broader tech sector is experiencing specific pressures.
The JPM specialist observed a rotation into 'Mag 7' and Internet names, a pattern typically seen when an open bond market pushes rates higher. Key questions circulating in the market centered on the weakness in optical (LITE, COHR, CIEN) and memory (SNDK) sectors, as well as significant declines in SMCI and TTMI following its capital expenditure announcement. The specialist concluded that while some memory concerns were linked to CXMT 4F2 news, the overall worries were multi-layered.
“JPM Tech specialist Joshua Meyers on today's tech selloff The most proximate reason seems to be Hock Tan's participation in a panel at a DBS conference in Singapore, where he warned financing could become a bigger bottleneck than component shortages (in addition to questioning frontier lab business models, and comparing 'many investors' to casino gamblers). Additionally, a sell-side research not over the weekend re-ignited power concerns that have worried investors for weeks (suggesting shortages of powered shell of as much as 19GW next year and more in '28). These worries are hitting on a low-liquidity holiday day, and news out of the middle east isn't helping.. As investors sit on their hands ahead of an expected private frontier lab investor meeting on Wednesday. While the SOX struggles at its 100MA, we're seeing the sort of rotation into Mag 7 and Internet names that we might expect if an open bond market were sending rates higher.. Key questions this morning have centered around why optical is particularly weak LITE COHR CIEN, what's driving memory lower (especially SNDK), why SMCI is down so much *again*, and why TTMI is being so punished for its capex announcement. Outside of TTMI, I don't have any company-specific reasons for weakness. Always appreciate your feedback/pushback on any of these thoughts.. A few folks immediately came back on memory with the CXMT 4F2 news I commented on this morning in Chips for Breakfast. I agree, but personally I also think the worries on memory are more layered than just that one bit of quite speculative news..”
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