US Hedge Funds Just Sold Every AI Stock They Bought Since 2025

Dextape brief

By Dextape Desk · November 1, 2026

Goldman Sachs data shows hedge funds reversed all of their AI stock buying made since early 2025 during five sessions in October. Morgan Stanley found they cut more than 8 percent of total stock bets since June, the steepest such cut in records reaching back to 2017. Big tech shares erased about $2 trillion in late October, and memory chipmakers Samsung, SK Hynix, Micron and SanDisk lost over $700 billion in under two weeks. Hedge funds borrow to enlarge their bets, so falling prices quickly swell losses and prompt sales that push prices lower still. On October 22, Goldman's basket of popular hedge fund stocks dropped 4.2 percent, the steepest daily decline since 2011. Macro investor Jordi Visser blames borrowed money rather than weak demand. Corporate profits are reported up about 20 percent, and AI computing demand still exceeds supply.

Why it matters: It shows how borrowed positions can amplify selloffs across AI-linked equities, a dynamic relevant to crypto traders watching leverage in risk markets.

Summary by Dextape, based on reporting by BeInCrypto. Written with AI from the publisher’s text and checked automatically for copied wording and unsupported figures. Not investment advice.