Hedge Funds Trim AI Tech Holdings

Major hedge funds including Tiger Global Management and Adage Capital Partners reduced their stakes in several leading artificial intelligence-linked companies during the final quarter of 2025, according to regulatory filings.

Tiger Global cut its holdings in Microsoft, Amazon and Nvidia, reflecting growing investor caution toward companies heavily investing in AI. Despite the reductions, Microsoft remains one of Tiger’s largest positions, valued at approximately $2.6 billion.

Similarly, Adage Capital trimmed its positions in Microsoft, Alphabet, Amazon and Nvidia, while increasing its stake in Oracle by around 19%, signaling a more selective approach to AI-related investments.

The adjustments come amid rising concerns that the strong valuations of leading tech firms may not be supported by future returns from massive AI spending. Investors have increasingly questioned whether long-term investments in AI infrastructure will deliver near-term financial results.

Elsewhere, SoftBank fully exited its Nvidia stake to free up capital for new investments, including its involvement in OpenAI. Quantitative hedge fund D.E. Shaw also reduced exposure to Nvidia, Micron and Meta, though it added to its Amazon and AMD holdings.

The moves suggest a shift toward cautious positioning as investors balance enthusiasm for AI growth with concerns over potential market overvaluation.