Goldman: hedge funds increase AI bets

Goldman Sachs said global hedge funds increased their exposure to artificial-intelligence stocks at the start of the second quarter, adding to positions in chipmakers and other companies tied to AI infrastructure. The bank’s latest Hedge Fund Trend Monitor said funds entered the quarter with their highest-ever long portfolio weight in semiconductors, even as software exposure fell to its lowest level since 2019. The shift shows managers leaning further into the hardware side of the AI trade rather than the application layer. A separate Yahoo Finance column on Monday said investors are now watching whether hyperscale cloud companies maintain the spending outlook that has supported the sector’s rally. ### Which part of the AI trade did hedge funds buy most aggressively? Goldman Sachs said semiconductors accounted for 10% of hedge fund long portfolios at the start of Q2 2026, the highest level on record. The report, cited by ANI and other outlets, said the largest increases in information-technology positioning came in semiconductors, systems software, tech hardware and application software. (newkerala.com) Goldman said software’s portfolio weight was 6%, the lowest since 2019. That contrast matters because it suggests funds favored picks-and-shovels exposure — chips, equipment and infrastructure — over broader software names as the AI theme matured. ### Which companies showed up most in the positioning data? Lam Research, Applied Materials, Analog Devices, Micron Technology and Intel were among the AI-linked companies that saw the biggest increase in hedge fund popularity, according to the Goldman report as cited by ANI. (newkerala.com) New Kerala, also citing the Goldman monitor, highlighted Lam Research and Intel among top holdings as funds increased AI exposure. Moneycontrol, citing Goldman Sachs, said hedge funds also piled into Nvidia and data-center stocks, describing AI and semiconductor bets as having reached record levels in the second quarter. That adds to the picture of managers concentrating exposure in the parts of the market most directly linked to compute demand. (aninews.in) ### Why are chipmakers and suppliers getting the money instead of software? Goldman said hedge funds increased ownership across much of the “AI infrastructure complex” during the quarter. That phrase, as cited by ANI and WebIndia123, points to a preference for companies that benefit from spending on servers, wafer-fabrication equipment, memory, networking and related hardware needed to build AI capacity. (moneycontrol.com) The portfolio shift also lines up with a broader market focus on capital expenditure by large cloud companies. Yahoo Finance said investors should watch hyperscaler AI capex commentary before the summer 2026 earnings season because even a reduction in 2027 spending guidance from a major buyer could change assumptions about Nvidia’s earnings power. ### If funds are already crowded into AI, what is the next pressure point? (aninews.in) Yahoo Finance said the risk is no longer whether AI demand exists, but whether the pace of spending can keep compounding. Its Monday column on the XOVR ETF said the sector faces potential re-rating risk if one of the large cloud spenders trims future capex guidance, a scenario that could hit richly valued AI-linked names. (finance.yahoo.com) Goldman’s own positioning data underscores that crowding. Record semiconductor weight and heavier ownership of the same cluster of chipmakers mean the next big test is likely to come from company guidance rather than from another round of enthusiasm about the theme itself. That is an inference from the combination of Goldman’s positioning data and Yahoo Finance’s guidance warning. (finance.yahoo.com) ### What should investors watch next? Summer 2026 earnings commentary from Nvidia and the largest hyperscale cloud companies is the next concrete checkpoint for the trade. Yahoo Finance said investors should track capital-spending guidance closely, while Goldman’s report shows hedge funds have already built large positions in the companies most exposed to that spending cycle. (newkerala.com) May 24 and May 25 reports citing Goldman suggest hedge fund managers have already made their bet. The next disclosures that could move those positions will come from quarterly earnings releases and capex updates by major cloud spenders and AI chip suppliers. (newkerala.com) (finance.yahoo.com)