Hedge funds are increasing their investment in major technology companies at the fastest pace in three years. According to Goldman Sachs data cited by The Kobeissi Letter, hedge fund net exposure to the Magnificent 7 stocks has climbed to 22% of total US exposure.
The Magnificent Seven comprises Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla.
This represents a gain of approximately 7 percentage points since July, marking the largest three-month jump since 2023. The current level surpasses the 21% peak recorded in June 2024 and approaches triple the 8% low recorded during the 2022 bear market.
Hedge fund exposure to semiconductor stocks has also risen significantly, reaching 12% of total US exposure, just below the 14% peak recorded in June 2026. For context, this metric stood at just 2% at the start of 2025.
The increased allocation to technology coincides with a surge in US semiconductor imports. In August, US semiconductor imports reached a record $15.4 billion, representing a $2.4 billion monthly increase. Over the preceding five months, US semiconductor imports rose $6.3 billion, or 69%. Year-over-year, imports increased $10 billion, or 185%—the largest annual increase in history. During the recovery from the 2008 Financial Crisis, the biggest year-over-year increase was 69% in January 2011, representing $1.4 billion.
