Investment Powerhouses Abandon Tech Sector at Unprecedented Pace, According to Goldman Sachs Data

Table of Contents Institutional investors have executed their most substantial retreat from technology equities in ten years, based on information compiled through Goldman Sachs’ Prime Book. This widespread liquidation unfolded across a two-week period, characterized by both long position exits and short position closures. Vincent Lin, an analyst at Goldman Sachs, noted that the magnitude of this risk reduction hasn’t been observed over the previous decade, with the exception of the meme stock phenomenon that occurred in early 2021. The most severe selling pressure concentrated in semiconductor companies, technology hardware manufacturers, storage providers, and software developers. The Magnificent Seven collection of stocks — featuring major players such as Apple, Nvidia, and Microsoft — faced net selling activity in four of the most recent five trading days. Even as institutional money managers retreated, certain Wall Street analysts are highlighting severely discounted technology stocks as attractive entry points. Figma, ServiceNow, and MongoDB represent three companies where analysts project potential gains of 33% or greater. Figma completed its initial public offering in July 2025 with elevated market expectations but has faced challenges maintaining momentum. The stock experienced a 68% decline throughout 2025 and has suffered an additional 49% drop during the current year. Competition intensified when Anthropic introduced Claude Design, a solution that directly challenges Figma’s primary product offerings. Nevertheless, Figma reported 40% year-over-year revenue expansion during the fourth quarter of 2025. The company maintains a net dollar retention rate of 136%. Wall Street’s consensus price target suggests approximately 114% appreciation from present trading levels. ServiceNow delivers cloud-based workflow automation solutions to more than 8,800 enterprise clients, serving over 85% of Fortune 100 companies. The stock has experienced a decline exceeding 40% since the beginning of the year. This depreciation occurred alongside a widespread software-as-a-service sector downturn that market participants have labeled the “SaaSpocalypse.” Investor anxiety regarding artificial intelligence’s potential negative impact on traditional software providers fueled the selloff. Among 48 analysts polled by S&P Global, 43 assigned ServiceNow either a “buy” or “strong buy” recommendation. The average analyst price objective indicates potential upside exceeding 60% from current valuations. ServiceNow’s CEO Bill McDermott has rejected the notion that artificial intelligence poses an existential threat to the business. During the company’s Q1 earnings conference, he stated, “There has never been a tailwind for ServiceNow like AI.” MongoDB develops database technology utilized by over 60,000 clients, including approximately three-quarters of Fortune 100 enterprises. While shares rallied 80% throughout 2025, they’ve retreated roughly 37% during the past four months. The downturn followed MongoDB’s below-consensus revenue outlook issued during its March financial update. Despite this setback, 30 out of 39 analysts surveyed by S&P Global maintain either a “buy” or “strong buy” rating. The median 12-month price projection for MongoDB stands 33% above its current market price. MongoDB operates with a gross margin of 71.31%, while the overall database software market maintains expansion, with artificial intelligence applications expected to serve as an additional catalyst for demand growth. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.