Major investment firms have begun purchasing technology stocks again following weeks of heavy selling, according to new reports from Wall Street banks. The buying activity comes as tech companies face scrutiny over their massive artificial intelligence investments and whether they'll pay off.
Investment firms have started purchasing technology stocks again after an extended period of selling, according to client reports from major Wall Street banks reviewed this week.
JPMorgan’s analysis revealed that hedge funds made significant purchases of major technology companies and firms considered at risk from artificial intelligence developments during the previous week.
The world’s largest technology companies have experienced significant drops in value this year, following years of exceptional growth, as market participants debate whether massive AI investments will produce adequate returns to support current stock prices.
“While positioning remains very stretched between Semis and Software (globally, in the U.S., and in Europe), the rotation seemed to slow or reverse a bit,” the JPMorgan client note stated.
Software companies experienced renewed investor interest after experiencing historically large sell-offs in prior weeks, according to the bank’s findings.
Meanwhile, Goldman Sachs reported that hedge fund borrowing levels rose from the week ending February 14 and are approaching their highest point in twelve months.
The investment bank noted that global stock selling orders reached their peak since former President Donald Trump’s tariff announcements last April.
Goldman Sachs identified financial sector stocks as experiencing the most net selling activity, while energy, healthcare, and consumer staples sectors attracted the strongest buying interest.
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