Hedge funds pile into US chips
Possibly positioning for the end of the chip selloff
Fresh data from Goldman Sachs shows hedge funds buying US semiconductor stocks again with real intensity, right after a sharp correction. It's a strong hint that the sector's selloff may have already bottomed.
Buying the dip
Image caption: Active-money trading flows and net exposure shifts in the US semiconductor and semiconductor-equipment industry
Biggest buying in 3.5 years: Last week, hedge funds' net buying of US semiconductor stocks hit its highest level in nearly three and a half years.
Buying hard into the drop: That wave came right after the sector's largest two-week selloff since June 2024. The quick, decisive shift reads as a wager that the correction is over.
Positioning doubled, still room to grow: Semiconductors now make up 10% of hedge funds' total exposure, double this time last year. But against the 14% peak set in May, there's still room to add.
What it signals
This money flow is a shot in the arm for a jittery tech market. Going from a rush to sell to a steady rebuild, the speed of Wall Street's return shows professional investors still have real conviction in the sector's long-term story, especially AI chips and the cyclical recovery.
Whether this marks the start of a fresh semiconductor rebound is the open question, but the smart money is clearly leaning in.