Goldman Sachs data is out: last week hedge funds bought a large amount of U.S. tech stocks, with inflows hitting the largest since December 2022 and the third largest weekly purchase volume in at least five years. Demand was strongest for companies related to software, semiconductors, and equipment, with hardware also rising. The seven giants were net bought for four consecutive days.
This is not panic buying, but targeted position building.
The logic makes sense: progress in U.S.-Iran talks caused oil prices to drop 7%, inflation expectations fell accordingly, easing pressure on the Federal Reserve, so risk assets rose first as a courtesy. Additionally, earnings reports from Microsoft, Amazon, and Google confirmed the narrative that "AI investments are turning into revenue," with capital expenditures under control and growth continuing. Hedge funds are buying not because it's "cheap," but because of "certainty."
But one detail is worth pondering—while hedge funds concentrated on buying tech stocks, what were retail investors doing? Over the past week, retail investors net sold tech stocks, especially focusing on Tesla and Apple. On one side institutions are buying, on the other retail is selling. Chips are moving from dispersed to concentrated.
Another structural observation—Palantir delivered 93% revenue growth and a 12% after-hours rise. This is no coincidence; it signals the AI software track beginning to pay off. Essentially, Palantir uses AI to help enterprises solve real problems, not "how many GPUs I have." This contrasts with Google and Tesla's AI narrative: one is "how much I invested," the other is "what I solved." Two logics, two pricing methods.
So when hedge funds concentrate on buying tech stocks, they may be buying not just "next week's rebound," but the core narrative entering Q3—AI is no longer priced solely by "computing power," but the value of software and services is gradually being recognized by the market. Palantir is just a signal; more names will validate this line going forward.
$GOOGL $TSLA $QQQB
#USIranDealOrNoDeal
This is not panic buying, but targeted position building.
The logic makes sense: progress in U.S.-Iran talks caused oil prices to drop 7%, inflation expectations fell accordingly, easing pressure on the Federal Reserve, so risk assets rose first as a courtesy. Additionally, earnings reports from Microsoft, Amazon, and Google confirmed the narrative that "AI investments are turning into revenue," with capital expenditures under control and growth continuing. Hedge funds are buying not because it's "cheap," but because of "certainty."
But one detail is worth pondering—while hedge funds concentrated on buying tech stocks, what were retail investors doing? Over the past week, retail investors net sold tech stocks, especially focusing on Tesla and Apple. On one side institutions are buying, on the other retail is selling. Chips are moving from dispersed to concentrated.
Another structural observation—Palantir delivered 93% revenue growth and a 12% after-hours rise. This is no coincidence; it signals the AI software track beginning to pay off. Essentially, Palantir uses AI to help enterprises solve real problems, not "how many GPUs I have." This contrasts with Google and Tesla's AI narrative: one is "how much I invested," the other is "what I solved." Two logics, two pricing methods.
So when hedge funds concentrate on buying tech stocks, they may be buying not just "next week's rebound," but the core narrative entering Q3—AI is no longer priced solely by "computing power," but the value of software and services is gradually being recognized by the market. Palantir is just a signal; more names will validate this line going forward.
$GOOGL $TSLA $QQQB
#USIranDealOrNoDeal