Source: Wall Street See

Against the backdrop of the five growth tech stocks (Other), which have taken turns to set new highs, it is widely believed that both hedge funds and individual investors are vying to join this 'AI investment bubble'. However, some analysts point out that this view is not entirely accurate.$Apple (AAPL.US)$, $Amazon (AMZN.US)$, $Microsoft (MSFT.US)$, $NVIDIA (NVDA.US)$, $Alphabet-A (GOOGL.US)$/$Alphabet-C (GOOG.US)$On Wednesday, June 26th, Vincent Lin, a senior brokerage specialist at Goldman Sachs, revealed a new trend in market capital flows. The report shows that individual investors are actively investing in super large tech stocks such as the 'Seven Sisters of American Stocks'. Especially in the field of semiconductor stocks, such as Nvidia and Penghua Guozheng Semiconductor Chip ETF, the buying activity of individual investors continues to be active.

In addition, the investment behavior of individuals in doubling their buying activity in the Nvidia ETF shows their preference for high-leverage products. The market value of this ETF has increased to more than $4 billion in just six months, demonstrating the concentration of individual investors in this field. This trend has also attracted the attention of short sellers.

Vanda predicts that unless small-cap stocks, cryptos, or internet-famous stocks, and other areas where individual investors have a preference, can demonstrate more sustainable outperformance, individual investors may continue to increase their investment in large tech stocks.

However, in stark contrast to the enthusiasm of individual investors, institutional investors (the 'smart money' in the market) are taking the opposite strategy and selling tech stocks on a large scale. This strategic shift is evident in risk exposures and fund flow data. Hedge funds have continuously increased the risk exposure of their portfolio this year, but recent trading flows show that they are releasing some risks, particularly through long liquidation and short coverage.

Goldman Sachs' analysis report also pointed out that in the past month, hedge funds have sold tech, media and telecom (TMT) stocks on a large scale, particularly semiconductor and semiconductor equipment sectors. The net selling activity of the US TMT sector may have reached a historic high, while fund managers have also reduced their net long positions in consumer discretionary and consumer staples sectors.

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Editor / jayden