Hedge funds suddenly reversed course on semiconductor stocks.

Last week, hedge funds’ net buying strength in U.S. semiconductor and equipment shares hit a new high for at least the past three and a half years.
And just two weeks earlier, they were still selling at large scale, with net selling momentum reaching the highest level since June 2024.
Semiconductor stocks currently account for about 10% of their net exposure in U.S. equities, double the level in the same period last year, but still below the 14% peak in May this year.
Hedge funds are betting that the sell-off in semiconductor stocks has already ended.