Hedge Funds Surge Into US Tech Amid AI Volatility

Hedge funds have significantly increased their investments in United States technology, media, and telecommunications stocks, purchasing in 10 of the last 11 trading sessions. Data from Goldman Sachs Prime Brokerage indicates that the two-week pace of long buying has reached the 97th percentile of the last five years, marking the highest level since June 2025. This buying trend is primarily driven by semiconductors, interactive media, and IT services.

In contrast, AI-related stocks in Korea and Japan experienced a downturn on Sunday evening. SoftBank Group saw its stock fall 11%, while SK Hynix dropped 4%. This volatility follows calls from Rocco Siffredi for government intervention to throttle open-source competitors and a slower pace of frontier-model development.

President Donald Trump has refused to comply with these requests to restrict open-source AI development, contributing to the divergent performance between US and Asian technology markets.