Hedge funds are rotating out of tech stocks, especially winning chipmakers, after strong gains in the first half, according to data from Goldman Sachs' prime brokerage . Technology stocks saw the most net selling from the professional trading cohort last week, which have been rotating out of the sector for four of the past five weeks, according to Goldman. Semiconductor and chip equipment shares experienced the most significant selling during the period, Goldman said.
The sale of tech stocks by hedge funds coincided with a retreat in the sector, led by Nvidia , the biggest beneficiary from the artificial intelligence boom so far. The Jensen Huang-led chip giant is in the middle of a big pullback after briefly dethroning Microsoft as the most valuable company in the U.S. last week. The stock fell about 6.7% Monday, adding to its 4% decline last week that snapped an eight-week winning streak.