AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI for the First Time Since 2023

AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI for the First Time Since 2023

Hedge funds just staged their biggest retreat from stocks since at least 2017, and Goldman Sachs says the unwind looks closer to its start than its end. What happens when NVIDIA reports earnings could determine whether a $5 trillion wipeout stabilizes or accelerates.

Hedge funds turn underweight on AI for first time since 2023 - Morgan Stanley (AIQ:NASDAQ)

Hedge funds turn underweight on AI as leverage falls and short covering drives buying.

Hedge Funds Turn Underweight on AI for First Time Since Early 2023

Managers are concerned that large AI infrastructure investments are not producing returns quickly enough, while Alphabet and Amazon earnings have unsettled investors.

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Goldman Sachs prime brokerage data shows hedge funds sold AI stocks for five straight days in October, erasing every net AI purchase they had made since the start of 2025, while Morgan Stanley says funds have cut more than 8% of their total equity positions since June, the biggest pullback since at ... Article link