US hedge funds sell off all AI stocks bought since 2025

According to data from Goldman Sachs and Morgan Stanley, US hedge funds aggressively sold AI stocks throughout October, completely unwinding their net long positions accumulated since early 2025. This leveraged unwinding wiped out approximately $2 trillion in Big Tech market capitalization, with memory makers including Samsung, SK Hynix, and Micron shedding over $700 billion in market value in just two weeks. Goldman Sachs noted that hedge funds' AI exposure remains near three-year highs, suggesting the selloff may be far from over.