The Nasdaq-100 Index ($IUXX) has experienced a significant tech-driven selloff, down 2.5% from last week’s highs as investors grow increasingly wary of artificial intelligence (AI) valuations and upcoming Federal Reserve commentary. The decline has been particularly concentrated in major tech stocks, with Magnificent 7 companies like Nvidia (NVDA), Tesla (TSLA), and Meta Platforms (META) leading the downturn amid mounting skepticism about AI hype.

Growing concerns have been fueled by OpenAI CEO Sam Altman’s comments about a potential market bubble, coupled with an MIT study showing weak corporate returns from AI investments. Separately, the potential for government intervention in the semiconductor industry through an equity stake in troubled chip company Intel (INTC) has further dampened sentiment. Market participants are also rotating out of highly valued tech shares into more defensive sectors ahead of Fed Chair Powell’s Jackson Hole symposium speech, with the tech-heavy index’s weakness pulling the broader S&P 500 Index ($SPX) lower.

Despite the current market pressure, analysts largely view this as a healthy rotation rather than the beginning of a prolonged downturn, particularly given that technology stocks had risen approximately 40% from April lows. The combination of profit-taking, stretched valuations, and seasonal weakness typical of August-September has contributed to the current selloff, though expectations suggest that any Federal Reserve signals about rate cuts could quickly reverse the negative trend.

There’s still significant event risk to consider in the weeks ahead – but for investors in search of tech stocks that have already corrected by 10% or more from their year-to-date highs, here are 5 Nasdaq-100 components that could be worth further research.

ARM’s selloff has been primarily driven by investor concerns over the company’s strategic shift from licensing to processor design, coupled with disappointing Q1 2026 earnings that failed to meet market expectations. The decline has been further exacerbated by broader industry concerns, including AI implementation challenges and market saturation fears, despite Arm’s continued dominance in semiconductor design.