U.S. hedge funds sold tech hardware stocks for a fourth week in a row, according to a client note from Goldman Sachs (GS.N) on Friday, in line with a recent decline in global chip shares and just before many of these companies will report earnings.
Tech shares and especially semiconductors have propelled the broader equity market higher this year. But tech stocks have been swinging dramatically on a combination of profit-taking and concern about the high levels of spending on AI and when the companies behind those outlays might see returns. The SOX index (SOXX.O), which tracks the performance of semiconductor stocks, declined 4.2% in the week to July 3.
Here's what the Goldman Sachs note said about hedge fund trading in that week:
