Hedge Funds Double Down on Big Tech Amid AI Boom

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Top Wall Street hedge funds, including Bridgewater Associates, Tiger Global Management, and Discovery Capital, increased their exposure to Big Tech stocks in the second quarter, capitalizing on a generational surge in artificial intelligence.

Funds reduced their holdings in lagging sectors such as aerospace, defense, consumer, and retail, returning to momentum investing as tech stocks staged a strong comeback. The S&P 500 (.SPX) is up 10% this year, largely driven by the largest technology companies, which make up nearly a third of the index’s market capitalization.

Outside tech, hedge funds like Lone Pine, Discovery, and Soros Fund Management also added positions in UnitedHealth Group (UNH.N), while Berkshire Hathaway unveiled new stakes. UnitedHealth shares are down 46% this year amid rising costs, a DOJ probe, a cyberattack, and the shooting of a former executive.

Quarterly 13F filings revealed these key hedge fund moves:

BRIDGEWATER ASSOCIATES:

  • Added significantly to Nvidia (NVDA.O), Alphabet (GOOGL.O), and Microsoft (MSFT.O).

  • Nvidia stake more than doubled to 7.23 million shares ($1.14B).

  • Alphabet and Microsoft increased by 84.1% and 111.9%, respectively.

  • Added Broadcom (+102.7%) and Palo Alto Networks (+117%).

DISCOVERY CAPITAL:

  • Doubled stake in America Movil (AMXB.MX) to 2.65 million shares ($95M).

  • More than doubled Meta Platforms (META.O) holdings and took a new position in Nvidia-backed CoreWeave (CRWV.O).

  • Increased UnitedHealth stake by 13%.

TIGER GLOBAL MANAGEMENT:

  • Bought more shares in the “Magnificent Seven”: Amazon (AMZN.O), Alphabet, Nvidia, Microsoft, and Meta.

  • Added ~4M Amazon shares, ending June with 10M shares ($2.34B).

  • Increased stakes in smaller AI-related companies such as Lam Research (LRCX.O).

COATUE MANAGEMENT:

  • Added new positions in Arm Holdings and Oracle (ORCL.N), worth ~$750M and $843M.

  • Increased holdings in Nvidia-backed CoreWeave to 3.39M shares ($2.9B).

LONE PINE CAPITAL:

  • Took a new position in UnitedHealth, buying 1.69M shares worth ~$528M.

These moves illustrate a clear pivot toward technology and AI-driven growth opportunities by major hedge funds in the wake of market volatility and tariff concerns earlier this year.

Nubank Reports 42% Profit Rise; Shares Surge

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Nu Holdings (NU.N), the parent company of Brazilian digital lender Nubank, posted a 42% year-on-year increase in net profit on a foreign exchange-neutral basis, driving its shares up more than 8% in after-hours trading on Thursday.

The company, which serves nearly 123 million clients across Brazil, Colombia, and Mexico, reported $637 million in second-quarter net profit. CFO Guilherme Lago attributed the growth to operational leverage and revenue expansion but noted that the drivers of growth are shifting. “If in the last three to five years a major part of our growth came from adding new customers, in the next three to five years a major part of our revenue growth in Brazil will come from deepening the relationship with these customers,” he said.

Nubank’s annualized return on equity remained at 28%, consistent with the prior year. Analysts from Citi described the quarter as “strong,” highlighting both net profit exceeding expectations and a recovery in net interest margins.

The lender’s total loan book rose 8% from the first quarter to $27.3 billion, with personal loans contributing to growth alongside existing credit card debt. The early default ratio declined to 4.4%, down 0.3 percentage points from the prior quarter, while the over-90-day delinquency ratio edged up to 6.6%, reflecting seasonal trends and short-term delinquencies in Q1.

Lago said the bank plans to continue expanding unsecured lending throughout 2025 and 2026, provided asset quality remains stable. “Until today… everything seems to be super on track,” he added.

Paramount Plans Bigger Film Slate, Retains Cable Networks After Skydance Merger

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Paramount Global will expand feature film production while keeping its cable networks, including Nickelodeon, MTV, and BET, following its $8.4 billion merger with Skydance Media. The studio aims to increase annual movie releases from eight to 15, eventually reaching 20 films, featuring franchises like “Star Trek” and “Transformers,” alongside original titles such as Timothée Chalamet’s “High Side.” Paramount executives view legacy cable channels as strategic assets for streaming and plan to leverage emerging technologies, including AI, to enhance storytelling. The approach contrasts with rivals like Warner Bros Discovery and Comcast, which are spinning off their cable networks.