Have you heard? Hedge funds have been selling U.S. tech and media stocks at the fastest pace in six months over the past two weeks, through Feb. 21. According to Goldman Sachs $GS (-1.89%) this is happening just as Nvidia $NVDA (-2.18%)one of the biggest tech companies, presents its earnings figures.
Nvidia shares are particularly interesting because they are seen as an indicator of the booming AI sector. With a market value of over 6.3% in the S&P 500, Nvidia is the second most valuable company in the world. Its shares have risen by an incredible 550% in the last two years!
According to Goldman Sachs' analysis, speculators have "aggressively" reduced both their long and short positions in AI equipment and media companies. This shows how uncertain investors are at this time. While hedge funds were losing money on their short bets, they were making profits on their long positions.
US markets saw a drop on Friday, partly due to disappointing economic data. Do you think this selling is a sign of a larger trend or is it just a short-term reaction to market conditions? 📈