A structural trend is gaining momentum across the hedge-fund industry: funds are ramping up exposure to artificial-intelligence (AI)-related tech hardware and semiconductors — reaching the highest levels since such data began being tracked in 2016. Reuters+1
According to a recent note from Goldman Sachs, hedge funds have increased holdings in chipmakers and other AI-hardware suppliers, reflecting optimism about further upside in the AI investment cycle. Reuters
This repositioning away from traditional defensive sectors toward AI-driven growth signals a broader confidence hinging on technology and infrastructure build-out. The move comes even as economic growth and employment metrics paint a mixed picture — a dynamic that some strategists say only increases the appeal of disruptive tech as a growth engine going into 2026. Reuters+1
For hedge-fund managers and allocators, these allocations represent a bet that AI continues to reshape markets, and that early exposure to hardware suppliers could deliver outsized returns if demand for chips, data-center infrastructure, and AI-related services keeps surging.