Prominent investors reduced their stakes in several major tech companies before the global market sell-off in early August, according to recent 13F filings. Notable figures like Bill Ackman and David Tepper pulled back from stocks such as Alphabet and Meta, as these companies faced mounting pressure to demonstrate the effectiveness of their significant investments in artificial intelligence (AI).
In the second quarter, hedge funds including those managed by Ackman, Tepper, and Daniel Loeb cut their positions in Alphabet (GOOGL), alongside other significant funds like Renaissance Technologies, Bridgewater Associates, and Seth Klarman’s Baupost Group. Similarly, these investors also reduced their holdings in Meta Platforms (META).
The move away from Alphabet and Meta was driven by concerns over whether the companies’ substantial AI expenditures were yielding the expected returns. Additionally, Intel (INTC) saw a decline in investor interest, with several hedge funds trimming their stakes after the chipmaker reported a larger-than-expected loss and announced a $10 billion cost-cutting plan that includes layoffs.
In contrast, some hedge funds increased their investments in Nvidia (NVDA), an AI chipmaker poised to benefit from rising AI infrastructure spending. Funds such as those managed by Bridgewater, Renaissance Technologies, and Tepper’s Appaloosa Management boosted their Nvidia holdings, anticipating growth from the surge in AI-related expenditure.
Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) notably reduced its stake in Apple (AAPL), although it remains Berkshire’s largest holding. Despite the reduction, other investors like Renaissance and Dan Loeb’s Third Point took the opportunity to add to their Apple positions during the same period.
These shifts highlight a broader trend of reallocating investments within the tech sector, with a noticeable move towards companies directly benefiting from AI advancements.
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