AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI for the First Time Since 2023

Keywords

artificial intelligenceinvestment trustssemiconductorsNVDAMETAQQQ

Open a keyword to see other news on the same topic.

Related tickers and likely impact

Impact is scored by AI from the headline and may be wrong. It is not investment advice.

Related news

• Stock Market Week: Chips, AI Sector Dive But Other Sectors Healthy; SpaceX, Tesla, Meta In Focus

  The stock market was divided this week, with the AI sector tumbling while many other areas performed well. SpaceX, Tesla and Meta were in focus with large earnings reports.

  Yahoo Finance·23/10, 15:40▼ NVDA▼ QQQ• META• TSLAartificial intelligencesemiconductorsNVDA
• Tech stocks tumble Friday , AI shares lead the wayhaitisun.com·16/10, 19:45▼ NVDA▼ QQQ▼ SPY▼ AAPLtech stocksartificial intelligenceNVDA
• Tech stocks tumble Friday , AI shares lead the wayiranherald.com·16/10, 19:45▼ NVDA▼ QQQ▼ SPY▼ AAPLtech stocksartificial intelligenceNVDA
• AI Doubts Shake Tech Winners on Eve of Earnings SeasonYahoo Finance·12/10, 20:01▼ META▼ NVDA▼ QQQNVDAMETAQQQ
• NVIDIA Corporation (NVDA): A Key Beneficiary of Durable Global AI Infrastructure Buildout

  In its third-quarter 2026 investor letter, Fred Alger Management's Alger Spectra Fund said Class A shares returned 0.29% without a sales charge, trailing the 0.45% return of the Russell 3000 Growth Index, and highlighted NVIDIA (NVDA) as a notable contributor. NVIDIA closed at $214.13 on October 23, 2026, down 4.95% over the past month but up 13.59% over the past year, with a market capitalization of $5.08 trillion and a 52-week range of $164.27 to $243.37. The fund calls NVIDIA a direct beneficiary of the AI infrastructure buildout, citing its competitive position, product roadmap and expanding market opportunity. It noted that the company reported stronger-than-expected results and a near-term outlook ahead of expectations, and that management signaled growth next year should be considerably faster than investors anticipated, with demand continuing to outpace supply.

  Yahoo Finance·26/10, 15:08▲ NVDANVDAartificial intelligencesemiconductors
• NVIDIA Corporation (NVDA) Remains a Key AI Growth Driver Despite Benchmark Headwinds

  Polen Capital's Q3 2026 investor letter for its Polen Focus Growth Strategy says the fund returned 4.46% net of fees in the quarter, beating the Russell 1000 Growth Index's 0.92% gain by 3.54 percentage points. Year to date, however, the net return was still negative at 8.11%, versus a 6.30% gain for the benchmark. Software and services holdings drove relative gains, offsetting weakness in semiconductor and direct AI-capex beneficiaries that faced valuation pressure as investors reconsidered infrastructure spending. The managers added positions in semiconductor equipment, power infrastructure, payments and data-storage companies, and highlighted NVIDIA (NASDAQ:NVDA) in the letter. NVIDIA shares fell 4.00% over one month, closed at about $221.97 on October 21, 2026, with a market cap of about $5.21 trillion, and traded between $164.27 and $243.37 over the past 52 weeks.

  Yahoo Finance·22/10, 14:25▲ NVDANVDAartificial intelligenceinvestment trusts

Related markets

US stocks →

Latest news

• Nasdaq-100 in correction again as AI earnings ‘not good enough’

  Luke Kawa of Sherwood News says this round of big-tech earnings was good but “not good enough” for the market, pushing the Nasdaq 100 into correction for the third time this year. US chip stocks had fallen 29% from their June high, though they remain up on the year. He notes Amazon and Alphabet reported solid numbers, with AWS expected to grow 40% in 2027 and 2028, yet the results failed to satisfy investors. Citing Conor Sen, he argues the bigger issue is the debt and stock issuance hyperscalers are using to fund AI buildouts. After steady bond and stock supply, spreads on the group’s long-dated bonds have widened, and there was no US investment-grade bond issuance from them in September.

  Yahoo Finance·03/11, 14:40▼ QQQ▼ MSFT▼ NVDA▼ SPYQQQNVDAartificial intelligence
• PLTR Stock Gets Price Target Hikes After ‘Another Top-Line Blowout,’ But Jefferies Sees Better AI Bets In MSFT, ORCL, SNOW Shares

  Palantir (PLTR) shares fell about 5% in morning trade, even as several analysts raised their price targets after third-quarter results. Revenue rose 96% year over year to $2.31 billion, beating expectations of $2.17 billion, and the company raised its full-year revenue forecast to $8.53 billion from about $8.15 billion. The main concern was total contract value (TCV), which grew only 6% to $2.92 billion, sharply down from 49% growth in the second quarter, with analysts linking the slowdown to shorter contracts. Citi raised its target to $265 and kept a 'Buy' rating, while Jefferies held its $80 target with an 'Underperform' rating and said Microsoft (MSFT), Oracle (ORCL) and Snowflake (SNOW) offer more compelling risk and reward. On Stocktwits, retail sentiment flipped to 'bullish' and message volume rose over 1,100% in 24 hours.

  Yahoo Finance·03/11, 14:38▲ MSFTPalantirearningsartificial intelligence
• The 'poison pill' ballot measure that could kill the California billionaire tax

  California voters are deciding today on Proposition 40, the Billionaire Tax Act, which would impose a one-time 5% tax on the net worth of Californians worth more than $1 billion, affecting the state's roughly 250 billionaires. A recent Public Policy Institute of California poll shows it trailing, with 46% in support and 52% opposed, after a $300 million ad campaign funded by tech billionaires and business groups. Tax experts say Proposition 42, a 'poison pill' measure that would permanently ban new state taxes on personal property and retroactive taxes, could undermine it if it gets more votes, as voters fear for their retirement accounts. Jared Walczak of Walczak Policy Consulting said both Proposition 41 and Proposition 42, created by a political action committee funded by tech executives and billionaires opposed to the tax, could win majority support.

  CNBC·03/11, 14:37taxesCaliforniabillionaires
• Anthropic's $100 billion financing gamble

  In The Loop host Ejaaz Ahamadeen examines Anthropic's (ANTH.PVT) third-quarter operating loss and compares it with how other hyperscalers finance their AI build-outs. He argues Anthropic lacks other revenue streams like Google or Meta, and that it needs to raise $100 billion in roughly two weeks. He also points to OpenAI's failure to raise $30 billion and Elon Musk's struggle to raise $42 billion for compute, saying market sentiment may be at its lowest since the AI hype began.

  Yahoo Finance·03/11, 14:29• MSFT• NVDAAnthropicOpenAIAI investment
• Tesla’s China-Made EV Sales Rise For 12th Straight Month – European Recovery Adds To Momentum

  Tesla sold 67,829 Model 3 and Model Y vehicles made at its Shanghai plant in October, up 10.3% year over year, extending China-made sales growth to 12 straight months. Wholesale sales, including domestic deliveries and exports, fell 28.9% from the previous month to their lowest since February, though the first 10 months of 2026 rose 21.4% to 810,889 units. In Europe, October registrations jumped 248% in Sweden, 131% in Norway, 271% in Spain and 94% in Italy, supported by higher fuel prices, government incentives and rising EV demand. Bank of America flagged China as the biggest regulatory risk to the proposed Tesla and SpaceX (SPCX) merger, since Shanghai operations would fall under a major U.S. defense contractor. TSLA is down more than 7% year to date but has gained more than 29% over the past three months.

  Yahoo Finance·03/11, 14:25▲ TSLATSLAelectric vehiclesChina
• You Can See The Diarrhea in YUM! Brands Third Quarter

  A Cyclospora outbreak pushed Taco Bell's same-store sales down 4%, but its regular customers have already returned. KFC's U.S. business is now the bigger problem.

  Yahoo Finance·03/11, 14:24earningsYum Brands