Hedge funds are piling back into Big Tech at a pace not seen in three years.
Hedge funds’ net exposure to the Magnificent 7 stocks has climbed to 22% of total US exposure, according to Goldman Sachs data, says The Kobeissi Letter.
The Magnificent Seven (Mag 7) stocks are Alphabet (GOOGL/GOOG), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA).
That is up about 7 percentage points since July, the biggest three-month jump since 2023.
The reading tops the 21% peak from June of 2024 and is nearly triple the 8% low hit at the bottom of the 2022 bear market.
“Meanwhile, hedge fund total US net exposure to semiconductor stocks is up to 12%, just below the 14% peak recorded in June 2026.
For perspective, this metric stood at just 2% at the start of 2025.
Everyone wants tech stocks right now.”
The news comes as US semiconductor imports surged $2.4 billion in August to a record $15.4 billion.
“This marks their largest monthly increase on record.
Over the last 5 months, US imports of semiconductors have risen +$6.3 billion, or +69%.
YoY, this figure soared +$10.0 billion, or +185%, its largest annual increase in history.
By comparison, during the recovery from the 2008 Financial Crisis, the biggest YoY increase was +69% in January 2011, or +$1.4 billion.
US semiconductor demand is exploding.”
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