Goldman Sachs Group strategists pointed out that hedge funds have reduced their holdings of large technology stocks while betting on more companies that will benefit from artificial intelligence.
The Zhitong Finance App learned that Goldman Sachs Group strategists pointed out that hedge funds have reduced their holdings of large technology stocks while betting on more companies that will benefit from artificial intelligence.
Strategist Ben Snider wrote in a May 21 report that in the first quarter of this year, the fund cut net positions of Nvidia (NVDA.US), Google parent company Alphabet (GOOGL.US), Amazon (AMZN.US), Microsoft (MSFT.US), and Facebook owner Meta Platforms Inc., but increased its holdings of Apple (AAPL.US) shares.
“At every stage of the AI transaction, companies that invest in AI infrastructure have performed best recently, attracting the most interest in our customer conversations,” said Snider.
The buzz surrounding artificial intelligence has propelled the S&P 500 index to a record high this year. So far, this fervor has focused on the biggest tech stocks, but as valuations become more expensive, investors are turning to industries that will either drive AI adaptation or show productivity benefits.
Snider said that in the first quarter, AI infrastructure-related stocks, including chipmaker Marvell Technology Inc., technology supply chain service company TD Synnex Corp., power utility company AES Corp., and circuit protection equipment manufacturer Littelfuse Inc., saw the biggest increase in popularity.
However, the strategist said that apart from Tesla, the biggest tech companies are still the most popular long positions on the bank's hedge fund VIP list. His team's analysis of 707 hedge funds covered stock positions totaling $2.7 trillion in early April.