Key facts
- Tiger Global Management reduced stakes in Alphabet, Nvidia, Microsoft, Amazon, and Meta Platforms in Q2.
- The hedge fund exited its entire Netflix position.
- New stakes were established in Advanced Micro Devices and SpaceX.
- Institutional investors showed a cautious approach to tech favorites in Q2, with a narrow gap between those increasing and decreasing positions.
- Nearly 44% of filers reviewed trimmed their holdings of megacap tech firms, while 42% initiated or expanded their holdings.
- Investors displayed a bullish tilt toward semiconductor names, with 48% net buyers and 34.5% net sellers.
Institutional investors adopted a cautious stance toward technology stocks in the second quarter, with a Reuters analysis of 13F filings showing a narrow gap between those increasing and decreasing positions in key market segments. Nearly 44% of filers trimmed holdings of megacap tech firms like Microsoft and Meta Platforms, while 42% initiated or expanded them.
Tiger Global Management was among those trimming exposure, reducing stakes in Alphabet by 45.4%, Nvidia by 6.8%, Microsoft by 9.3%, Amazon by 3.2%, and Meta Platforms by 8.5%. The hedge fund also exited its entire Netflix position, selling 2.44 million shares valued at $234.5 million. Conversely, Tiger Global established new positions in Advanced Micro Devices, acquiring 674,727 shares worth $392 million, and in SpaceX, taking a 375,000 share stake valued at $64.1 million. The fund also significantly cut its Broadcom holdings by 51% and Taiwan Semiconductor Manufacturing by 12.3%, while more than doubling its Intel stake to 4.25 million shares.
Market participants suggest this closely matched buying and selling indicates an absence of consensus on which companies will ultimately profit from AI spending, despite agreement on the quantum of investment. Some large firms may have already built up their desired positions, explaining why good earnings reports did not always translate to stock price increases. Risk parameters and investment policies also play a role for long-term holders.
Despite the cautious approach to megacap tech, institutional investors maintained a bullish tilt toward semiconductor names, with 48% of filers being net buyers and only 34.5% net sellers. A similar narrow gap was observed for major software companies. Investors also showed a bias for AI-themed stocks, with 36% of institutions disclosing net buys.
In contrast, the energy sector saw little institutional affection, with 40.3% of filers reporting net sales and only 28% net buyers. However, OnyxPoint Global Management increased its exposure to energy plays, establishing new positions in BP and Devon Energy, and also invested in Fervo Energy, a geothermal provider. OnyxPoint also initiated a stake in Keel Infrastructure, a data center company.
Overall, institutional investors displayed a wait-and-see attitude toward data centers, with net buyers and sellers almost precisely balanced.