Hedge funds sell $200 billion in AI stocks, erasing 2025 net purchases

ChainCatcher report, according to Coin Bureau citing Goldman Sachs prime brokerage data, hedge funds have net sold global AI-related stocks for five consecutive trading days, with the total selling volume offsetting all their net AI stock purchases since the beginning of 2025. Data shows that hedge funds have collectively sold approximately $20 billion in tech stocks over the past two weeks, primarily by reducing existing long positions—the scale of long-selling was about 3.5 times greater than new AI short positions. On October 22, the basket of popular hedge fund holdings tracked by Goldman Sachs fell 4.2% in a single day, marking its worst performance since 2011. Additionally, according to Steno Research citing Morgan Stanley data, hedge funds overall equity exposure was reduced by approximately 7.8%, the largest decline since Morgan Stanley began tracking in 2016. Meanwhile, memory chip companies including Samsung, SK Hynix, Micron, and SanDisk have collectively lost over $700 billion in market value within less than two weeks; chip stocks fell 15.6% in October, while the S&P 500 index declined by less than 1% during the same period.