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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.

Meta Unlikely to Further Change Pay-or-Consent Model, Faces Imminent EU Fines: Sources

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Meta Platforms is expected to maintain its current pay-or-consent model without further adjustments, making it nearly certain to face new antitrust charges and significant daily fines from the European Union, according to sources with direct knowledge of the situation.

The European Commission recently warned Meta that limited tweaks to the model would not satisfy the Digital Markets Act (DMA), which aims to limit Big Tech’s market power through strict regulations. Meta was already fined €200 million ($234 million) in April for breaching the DMA with its pay-or-consent approach from November 2023 to November 2024.

Although Meta modified the model in November 2024 to reduce the use of personal data for targeted ads, the EU remains unsatisfied. Sources indicated that unless circumstances change, Meta will not propose further revisions, prompting expected new charges and daily fines that could reach up to 5% of the company’s average daily global revenue, starting from June 27. The final decision on fines has yet to be finalized.

Following the Reuters report, Meta’s shares dropped 1.7% mid-session. Meta declined to comment on the latest developments but reiterated previous statements asserting its compliance with the DMA, highlighting the broad choices offered to European users and accusing the Commission of unfairly targeting its business model.

EU’s Top Court Adviser Supports Italy in Meta Platforms Copyright Dispute

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An adviser to the European Union’s highest court stated on Thursday that EU member states have the right to implement their own measures to strengthen the position of news publishers in negotiations with large online platforms, provided these do not infringe on freedom of contract.

The dispute under review by the Court of Justice of the European Union (CJEU) involves Meta Platforms, owner of Facebook, and Italy’s communications regulator AGCOM. The case centers on a fee that Meta must pay Italian publishers for using snippets of their news articles.

Meta challenged whether national measures like Italy’s are compatible with rights granted to publishers under EU copyright law. However, CJEU Advocate General Maciej Szpunar argued that EU copyright rules aim not only to protect publishers from unpaid use of their content but also to ensure they receive a fair share of revenue generated by platforms.

Szpunar emphasized the public interest behind these rules, describing them as efforts to support the economic viability of the press, which he called “a key pillar of democracy.”

Meta said it will await the court’s final ruling but expressed concerns that Italy’s implementation of the directive undermines the goal of copyright harmonization in Europe. A Meta spokesperson warned that inconsistent legislation can hinder innovation and create uncertainty.

The adviser also noted that Italy’s regulator must respect contractual freedom. Szpunar said AGCOM’s powers—such as setting remuneration benchmarks, resolving disputes, and monitoring information—are acceptable if they serve only to assist and do not restrict the parties’ freedom to contract.

The CJEU is expected to issue its decision in the coming months, and it often aligns with the advocate-general’s recommendations.