U.S. Hedge Funds Sell Tech Stocks for Fourth Week

U.S. hedge funds have sold semiconductor and tech hardware stocks for four consecutive weeks, establishing the sector as the most heavily net-sold area of the U.S. market. Data from Goldman Sachs indicates that the Philadelphia Semiconductor Index declined between 4.2% and 6.3% in the week ending July 3.

Analysts describe the move as a strategy for profit-taking and risk management rather than a wholesale abandonment of the artificial intelligence trade. Hedge fund exposure to semiconductors remains in the 98th percentile of the last five years, suggesting a high baseline of investment despite the recent sell-off.

Investors are currently rotating capital away from expensive chipmakers and toward other AI beneficiaries, including cooling suppliers and software companies. Capital is also moving into non-tech sectors such as consumer staples, real estate, and energy. This shift comes amid broader market concerns regarding the sustainability of high AI spending and the impact of rising bond yields.