Hedge Funds Exit Major AI and Tech Stocks
Billionaire investors and hedge funds reduced holdings in major AI and technology stocks during the second quarter amid concerns over AI infrastructure returns.
Viking Global Investors and other major hedge funds reduced their holdings in leading artificial intelligence and technology stocks during the second quarter of the year. This trend included Viking Global Investors selling its entire stake in Apple, Appaloosa Management exiting Microsoft, and Two Sigma liquidating positions in Amazon and Tesla.
Other significant divestments included Leon Cooperman selling all 75,000 of his shares in Alphabet and Third Point LLC exiting its position in Meta Platforms. These moves reflect growing investor caution regarding whether the massive capital expenditures required for AI infrastructure will generate sufficient returns.
A broader market rotation has seen investors move away from technology names, including Dell Technologies, Applied Materials, and Cisco Systems, in favor of discounted sectors. Gains were recorded in retail firms such as Costco and Walmart, home improvement stocks like Home Depot and Lowe's, and pharmaceutical companies led by Eli Lilly. While Intel and Nvidia faced selling pressure, their losses moderated toward the end of recent trading sessions.
