AI-related stocks see five consecutive days of net selling; hedge funds unwind purchases made since 2025

Hedge funds sold global AI-related stocks for a fifth consecutive trading session, unwinding all cumulative net buying accumulated since early 2025, according to Goldman Sachs' hedge fund trading flow data. Over roughly two weeks, funds also cut technology sector exposure by about $20 billion (approximately 26.7 trillion won), with most selling coming from existing holdings rather than new short positions—the pace of selling existing positions was roughly 3.5 times the rate of building new AI-related short positions. The net selling marks a significant sentiment shift among institutional investors toward the AI trade, though Goldman Sachs noted the reduction reflects trimming of long exposure, not a full liquidation of AI stock holdings, and the $20 billion tech figure covers a broader sector and different period than the five-session AI-specific tally. Watch for whether the selling streak extends and whether hedge funds rotate into new short positions on AI names, which would signal a more decisive bearish turn in positioning.