November 2025 Market Vibe Shift: Tech Sell-offs, AI Bubble Discourse & Sector Rotation

The November 2025 market vibe shift is characterized by a stark disconnect between strong tech fundamentals and sentiment-driven price drops. AI leaders NVDA and PLTR reported exceptional Q3 earnings (NVDA:94% YoY revenue growth, PLTR:63% YoY) [0] but experienced double-digit declines due to Michael Burry’s high-profile short positions and AI bubble warnings [4]. This aligns with the Reddit user’s observation of “random sell-offs not aligned with earnings” [1]. Sector performance shows a clear rotation to value: Energy (+1.17%) and Consumer Defensive (+0.89%) outperformed, while the tech-heavy NASDAQ fell 2.45% [3]. Fed rate cut expectations (84% for December) [5] have not reversed tech’s decline, indicating sentiment is the primary driver.

1. Fundamentals vs Sentiment Disconnect
   : Tech stocks with strong earnings are dropping due to narrative (AI bubble talk) rather than fundamentals [0].
2. Accelerated Sector Rotation
   : Investors are moving from high-growth tech to value sectors, reflecting risk-off sentiment [3].
3. High-Profile Impact
   : Burry’s warnings caused immediate sell-offs in NVDA and PLTR, demonstrating outsized influence of celebrity investors [4].
4. Fed Policy as Secondary Factor
   : Despite higher cut probabilities, tech sentiment remains negative, showing limited impact of monetary policy on current vibe [5].

• AI bubble volatility: Burry’s short positions and hardware obsolescence arguments pose risks for AI stocks [4].
• Tech Volatility: NVDA (2.63% daily std dev) and PLTR (4.10% daily std dev) exhibit high volatility [0].
• Rotation Pressure: Further shift to value could pressure growth tech portfolios [3].

• Value Sector Gains: Energy and Consumer Defensive sectors offer rotation options [3].
• Tech Rebound Potential: Discounted AI stocks with strong fundamentals could rebound if sentiment reverses [0].
• Fed Support: December rate cuts may stabilize broader markets [5].

• NVDA declined 14.94% and PLTR 17.85% in November despite strong earnings [0].
• NASDAQ fell 2.45%, while Energy (+1.17%) and Consumer Defensive (+0.89%) rose [3].
• Fed December rate cut probability is 84% [5].
• Burry’s AI bubble warnings are driving tech sentiment [4].
• Market sentiment is risk-off, with rotation to value [1].