Hedge Funds Cut AI Stock Exposure to Year-to-Date Low, Goldman Sachs Data Shows

According to Goldman Sachs Prime Brokerage data on July 17, hedge funds have reduced their exposure to a basket of AI-related stocks to the lowest level this year. The basket includes semiconductor and AI hardware stocks such as AMD, Micron, and Nvidia. Goldman Sachs data indicates the recent selloff reflects profit-taking and position adjustments rather than a fundamental deterioration.

Some investors are considering rotating from crowded chip trades to underperforming hyperscalers including Meta, Alphabet, and Oracle, according to Goldman Sachs' strategy commentary.