High-Growth Tech Stocks Slide Sharply — What’s Driving the Selloff?

High-growth tech stocks tied to AI, quantum computing, and new-energy sectors have plummeted over the past month. CoreWeave (CRWV), D-Wave Quantum (QBTS), Rigetti Computing (RGTI), IonQ (IONQ), and SoundHound AI (SOUN) each dropped roughly 30% from mid-October peaks—a stark reversal for a group that had nearly tripled since July.

The selloff accelerated as Q3 earnings season began, with investors pivoting to companies demonstrating solid profits and cash flow. FactSet data reveals 82% of S&P 500 firms beat earnings expectations, while 77% surpassed revenue estimates. This flight to fundamentals propelled the iShares MSCI USA Value Factor ETF (VLUE) to a 6% gain, outpacing the broader market.

Quantum computing stocks faced additional pressure amid policy uncertainty. D-Wave Quantum and Rigetti Computing bore the brunt of the downturn as speculative capital retreated from pre-revenue ventures toward established earnings performers.