Goldman Sachs says hedge funds are taking profits in surging chip stocks while maintaining overall exposure to the AI theme

According to a report sent to clients by Goldman Sachs' prime brokerage team, in the past month, semiconductors and semiconductor equipment have been the most net-sold sub-sectors in the U.S. stock market. At the same time, these funds have increased their short positions in U.S. equity macro products, indices, and exchange-traded fund (ETF) instruments, which are typically used to hedge broader market risks. These short positions have now risen to their highest level in 10 years.