Hedge Funds Double Down on Big Tech Amid AI Boom
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:
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Added significantly to Nvidia (NVDA.O), Alphabet (GOOGL.O), and Microsoft (MSFT.O).
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Nvidia stake more than doubled to 7.23 million shares ($1.14B).
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Alphabet and Microsoft increased by 84.1% and 111.9%, respectively.
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Added Broadcom (+102.7%) and Palo Alto Networks (+117%).
DISCOVERY CAPITAL:
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Doubled stake in America Movil (AMXB.MX) to 2.65 million shares ($95M).
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More than doubled Meta Platforms (META.O) holdings and took a new position in Nvidia-backed CoreWeave (CRWV.O).
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Increased UnitedHealth stake by 13%.
TIGER GLOBAL MANAGEMENT:
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Bought more shares in the “Magnificent Seven”: Amazon (AMZN.O), Alphabet, Nvidia, Microsoft, and Meta.
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Added ~4M Amazon shares, ending June with 10M shares ($2.34B).
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Increased stakes in smaller AI-related companies such as Lam Research (LRCX.O).
COATUE MANAGEMENT:
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Added new positions in Arm Holdings and Oracle (ORCL.N), worth ~$750M and $843M.
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Increased holdings in Nvidia-backed CoreWeave to 3.39M shares ($2.9B).
LONE PINE CAPITAL:
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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.
