US technology stocks are facing intense selling pressure from hedge funds.
Hedge funds have unloaded IT jobs in six of the past eight weeks, marking the biggest eight-week sales in at least a decade. Reports Barchart, citing data from Goldman Sachs.
Technology ranks as the top-selling sector in the US among hedge funds in the past week alone.
Hedge funds’ overall technology exposure as a percentage of total market exposure has now fallen to its lowest level since February 2026. At the current pace, hedge funds’ technology exposure could reach its lowest point in at least five years as early as next week.
The continued outflows reflect changing risk appetite amid rising valuations and broader market uncertainties.
Portfolio managers appear to be reallocating their funds away from high-growth sectors and toward more defensive areas.
This trend indicates increasing caution among sophisticated investors regarding the near-term performance of technology.
Such moves could impact broader market dynamics in the coming weeks.
Goldman Sachs strategists led by Ben Snyder He says Bloomberg reported that “painful volatility in popular AI infrastructure stocks” prompted investors to invest in other sectors.
“History, positioning, and lack of a suitable catalyst point to continued near-term challenges for AI
Infrastructure momentum trading despite solid fundamentals.
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