Goldman Sachs reports record hedge fund sales of US tech stocks

Hedge funds just hit the eject button on US tech stocks harder than at any point in the last decade. Goldman Sachs Prime Services data shows that the week ending June 25 saw the largest net selling of US information technology equities since the firm began tracking the data in 2016, registering a z-score of -4.0.

Semiconductors and related hardware took the brunt of it, accounting for more than 50% of the total outflows. That’s particularly striking because just one month earlier, in May, hedge funds held record or near-record high positions in global IT and semiconductor stocks, riding a wave of AI-fueled optimism.

The so-called Magnificent 7, the cluster of mega-cap tech names that have dominated market narratives for years, saw their positions shrink for the fifth consecutive week. Their aggregate and net exposures dropped to near three-year lows, sitting at the 4th and 6th percentiles respectively.

Total US equity net outflows for the week hit $8.5B, marking the first outflow since March. Large-cap tech stocks fell approximately 6% during the period, while the broader S&P 500 declined around 2%.

Into early July, tech hardware remained the most heavily net-sold sector for a fourth consecutive week, suggesting this isn’t a one-off rebalancing but something more structural in how institutional money is repositioning.

The gap between May’s record-high tech positioning and June’s record-breaking exodus also reveals something about the fragility of consensus trades. Crypto markets, with their thinner liquidity and more retail-heavy participant base, tend to amplify these dynamics rather than dampen them.

If hedge funds continue pulling back from growth equities at anything close to this pace, expect spillover pressure on digital assets, particularly altcoins with AI or tech-adjacent narratives that rose in sympathy with the semiconductor boom. Bitcoin’s relative positioning will depend on whether institutional allocators view it as part of the tech trade or something distinct, and that perception can shift quickly when $8.5B is heading for the exits in a single week.

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