Hedge Funds Shift AI Investments from Big Tech to Infrastructure and Utilities

Investors are diversifying their AI portfolios, moving beyond giants like Nvidia to lesser-known stocks in supportive sectors.

Goldman Sachs reports hedge funds are reducing stakes in major tech firms like Google, Amazon, and Microsoft.
Hedge funds are increasing investments in companies involved in AI infrastructure and utilities, such as Marvell Technology and AES Corporation.
AI's growth is boosting demand for electrical components, data centers, and power utilities.
Smaller AI-related stocks like AXT Inc. and Littelfuse are seeing significant gains.
Nvidia remains a key player, but its dominance is prompting investors to seek new opportunities.