Hedge Funds Double Down on Semiconductors as AI Demand Surges
Hedge funds are placing historic bets on semiconductor stocks, with sector exposure reaching 7.5% of total global allocations—double 2022 levels. The Kobeissi Letter reveals net exposure has skyrocketed 900% as AI-driven chip demand reshapes institutional portfolios.
Semiconductor ETFs are drawing unprecedented inflows as the sector becomes a mandatory play for tech-focused investors. "This isn't cyclical growth—it's structural transformation," notes one fund manager, citing hyperscalers' insatiable need for advanced computing power.
Market dynamics now mirror the dot-com era's infrastructure buildout, but with chips replacing fiber optics as the enabling technology. Nvidia, TSMC, and ASML have become the new bellwethers as hedge funds position for what they call "the silicon renaissance."
