Hedge funds reverse all AI stock purchases since 2025 in five days

Hedge funds sold AI stocks for five consecutive days in October, reversing every AI purchase made since the start of 2025, according to Goldman Sachs data. Funds cut more than 8% of their total stock bets since June, the biggest retreat since at least 2017. The sell-off contributed to a $2 trillion drop in big tech stock values. While the S&P 500 was relatively flat, memory chipmakers Samsung, SK Hynix, Micron, and SanDisk collectively lost over $700 billion in under two weeks. On the heaviest selling day, funds sold shares 3.5 times faster than they opened new bets against stocks.