US technology stocks are facing intense selling pressure from hedge funds.
Hedge funds have offloaded information technology positions in six of the past eight weeks, marking the largest eight-week sales in at least a decade, reports Barchart, citing data from Goldman Sachs.
Technology ranks as the most-sold US sector among hedge funds in the last week alone.
The hedge funds’ overall tech exposure as a percentage of total market exposure has now declined to its lowest level since February 2026. At the current pace, the hedge funds’ tech exposure could reach its lowest point in at least five years as early as next week.
The sustained outflows reflect shifting risk appetites amid elevated valuations and broader market uncertainties.
Portfolio managers appear to be reallocating away from high-growth sectors toward more defensive areas.
The trend signals heightened caution among sophisticated investors regarding near-term technology performance.
Such moves could influence broader market dynamics in the coming weeks.
Goldman Sachs strategists led by Ben Snider says the “painful volatility in popular AI infrastructure stocks” has investors looking to invest in other sectors, reports Bloomberg.
“History, positioning, and lack of a favorable catalyst point to continued near-term challenges for the AI
infrastructure momentum trade despite solid fundamentals.”
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