Hedge funds double down on tech, fueled by AI momentum
Big-name hedge funds like Bridgewater, Tiger Global, and Discovery Capital have ramped up their investments in major tech companies during the second quarter of 2025.
After a rocky start to the year with inflation and tariffs shaking things up, hedge funds are now chasing the momentum around artificial intelligence.
Tech takeover
Tech giants—think NVIDIA, Microsoft, Alphabet, and Meta—now make up almost a third of the S&P 500's value and have helped push the index up 10% so far this year.
Hedge funds are moving away from slower sectors like retail and aerospace to focus on where they see real growth: AI-driven companies.
Big bets on big names
Bridgewater more than doubled its NVIDIA stake to $1.14 billion and boosted holdings in Microsoft and Alphabet.
Tiger Global added Amazon and chipmaker Lam Research; Discovery Capital picked up more Meta, cloud player CoreWeave (which is backed by NVIDIA), and even stuck with UnitedHealth despite its recent dip.
The message is clear: hedge funds are betting that AI will keep powering tech—and their portfolios—ahead.