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Goldman Sachs: Hedge funds' exposure to AI stocks has fallen to its lowest level this year.

1 hours ago

Prime brokerage data shows hedge funds are cutting their exposure to AI-related stocks, explaining why strong earnings and upbeat guidance failed to prevent chip stocks from falling. According to a Wall Street Journal report citing data from Goldman Sachs’ prime brokerage business, hedge funds’ exposure to a basket of AI-themed stocks has dropped to its lowest level this year. The basket includes previously high-flying AI hardware and semiconductor stocks such as AMD, Micron, and Nvidia. Goldman Sachs data indicates that the recent decline is more of profit-taking and position adjustment rather than a sudden deterioration in fundamentals. This round of position reduction occurred after chip stocks had rallied sharply. Despite TSMC’s strong results and ASML’s upward guidance, semiconductor stocks were still sold off; the PHLX Semiconductor Index fell more than 4% on Thursday. Goldman Sachs’ relevant strategy view suggests that some funds are considering shifting from the crowded chip trade to hyperscalers that have underperformed this year, such as Meta, Alphabet, and Oracle.

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Micron announced that it has signed an SCA with seven companies including Qualcomm to secure automotive memory supply.

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Coinbase CEO’s profile picture change drives sharp gains for B20 meme coin Brain, with its market capitalization briefly hitting $30 million.

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