Overview
- Goldman’s Prime Services desk reported Monday that the week ending June 25 registered the largest net selling of U.S. information-technology equities since the firm began tracking hedge fund positions in 2016.
- Hedge funds cut overall U.S. tech exposure by about 10% over two months, selling tech in six of eight weeks as portfolios shifted away from earlier record-long bets.
- Semiconductor, memory, and AI-infrastructure hardware names absorbed more than half of the selling, driving steeper declines in chipmakers than in broad large-cap tech.
- The outflow pushed Magnificent 7 exposures to near three-year lows and produced roughly $8.5 billion in U.S. equity net outflows in a single week, as funds reduced longs and increased short positions.
- Goldman says the move looks driven mainly by positioning and valuation reassessment rather than a collapse of AI fundamentals, but it warns that market direction now hinges on quarterly earnings and corporate AI spending guidance and could spill over into crypto and smaller markets.