Tech Selloff: Hedge Funds Dump AI Stocks at Fastest Pace Since 2016
Goldman Sachs data shows hedge funds slashed tech/AI exposure at the fastest pace since at least 2016 last week, with the Nasdaq 100 down 5.5% and global tech funds seeing -$4.8B outflows. Bulls argue this clears the decks for a year-end rally.
What we know
An account on X led with Goldman Sachs reporting hedge funds cut technology exposure at the fastest pace since 2016 over the five sessions ending October 15, with the Nasdaq 100 down 5.5% and semiconductors the hardest hit. Another account on X separately reported global tech equity funds saw -$4.8B outflows in the week ending Oct 14 — their largest in 5+ weeks — with US tech leading at -$5.2B. Another account on X noted semis just had their longest losing streak since 2008 and hedge funds dumped all net AI buying since 2025 in a single week, yet argued demand fundamentals haven't changed. Goldman's Pasquariello was quoted by another account on X saying the record dump 'cleared the decks for a year-end rally.' another account on X noted chips are bouncing today with $MRVL up 7%, though it called it a bounce until 264 is reclaimed. Another account on X called current bear sentiment the loudest since ChatGPT launched, seeing massive asymmetry for AI investors.
How the story developed
Goldman Sachs data shows hedge funds slashed tech/AI exposure at the fastest pace since at least 2016 last week, with the Nasdaq 100 down 5.5% and global tech funds seeing -$4.8B outflows. Bulls argue this clears the decks for a year-end rally.
Goldman Sachs CEO David Solomon called tokenization and DeFi an 'exciting opportunity' creating 'broader distribution channels' on the Q3 earnings call, explicitly denying it threatens their markets business.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.