Hedge Funds Dump Tech at Record Pace as AI Trade Wobbles

Goldman Sachs told clients that hedge funds cut their technology stock exposure at the fastest pace the bank has on record, a signal of broad repositioning away from the sector that has driven much of the market's gains this year. The move coincided with a rough session for AI-linked stocks, with CoreWeave among the names under pressure. The reaction split opinion on what it means. Some read weakness in names like ASML, a major chip-equipment maker, alongside commentary from investor Paul Tudor Jones, as early evidence that the AI capital-spending boom is losing steam. Others argue the moves reflect position-trimming after a strong run rather than a change in the underlying growth story. What remains unresolved is whether the slowdown shows up in actual spending. Hyperscalers' capital expenditure plans and CoreWeave's own backlog growth, both due to be updated in upcoming earnings reports, will be the next test of which reading is correct.