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For weeks, many major market shares in the market were mostly heading down with only ancient momentum. Nafidia ((Nvda)) It is at risk of decrease to less than $ 100 per share, and Tesla Tsla will return to less than $ 250.
This was due to a mixture of factors, but it seems that the negative market momentum caused by speculation is essentially. The customs tariff imposed by the Trump administration generated a state of great uncertainty, and since more tariffs on the horizon, this trend appears to be ready to continue.
This represents a complex view of investors, especially in the technology sector. Although many companies have shown plans to increase artificial intelligence spending (AI) in 2025, most technology shares face an arduous battle as market conditions continue to shift against them.
Now, new data from Wall Street appears in a new trend indicating a tremendous transformation in the investment strategy.
Close the bears on previous Big Tech’s preferences
As the entire sectors are struggling recently, experts speculate that the United States is heading towards the bear market. The combination of high uncertainty and the high prices of consumers in many sectors encourages investing their jobs in many companies, which leads to more negative momentum.
Whenever the market conditions show signs of bad transition from the worse, short sellers usually close in companies that they see are much further. While they often target the least stable companies, a new report from Morgan Stanley ((Ms)) It reveals that the hedge funds intensify their bets against many of the largest technology sector names.
Related: The open sellers are closed in some horrific technical stocks
The companies concerned are Tesla and NVIDIA and its colleague in Ai Chipmaker Advanced Micro Devices ((AMD)) . The first two, The Magnificent 7, a group of the best shares responsible for leading most of the sector’s growth, decreased by 15 % during the past month.
AMD has been slightly outperformed and is still in green for the same period, albeit by only 1 %. However, if the hedge boxes are betting against NVIDIA, it is likely to be downward towards AMD, as the company produces similar AI chips and similar customer service. like Reuters Reports:
“The hedge funds step shows how hedge funds have become quieter around the stock market after years of gains exceeding 20 % in the S&P 500. The index decreased by 2.6 % this year, as concerns related to American commercial policy.
Their short stakeholders also confirm companies such as NVIDIA and Tesla hedge boxes at least from the amazing seven shares that were popular seven of the largest expensive American technology companies. “
Also notes the port, each member of 7 is a member of 7, with the exception of the definition platforms, ((Dead)) It is currently twice the performance of the index. While many of these higher technical stocks are struggling, Tesla has been in full focus in recent times, as it has sparked alien from Elon Musk on Capitol Hill, a violent reaction from consumers.
- While the Tesla shares are drowned, surrounded by the burning questions Elon Musk
- Amnesty International CEO judges are a serious warning about the future of Nafidia
- Short sellers target some sudden large technology shares
AMD is not part of the Elite Group collection of technology shares, but like NVIDIA, it has struggled since the year began and currently decreased by 16 % of the year (YTD). Tlas and NVDA decreased by 34 % and 24 % YTD, respectively, although all three companies fought high fluctuations last week, and failed to maintain any real momentum.
Is the wonderful 7 era ended in the end?
Since the launch of ChatGPT, the artificial intelligence revolution was launched in 2023, many investors focused on the wonderful 7, which converted the concentration from the prominent technical stock group that was previously referred to as Faang (Facebook, Amazon, ((amzn)) apple, ((Aapl)) Netflix, ((Nflx)) And Google.
Related: Tesla Stock Sounds, on a big problem in the face of Elon Musk
Now that the hedge funds have increased their bets against many of the most prominent companies in the technology sector, it raises an important question: Is the trip for the wonderful 7? This is probably making new sales data, as it does the fact that Wall Street was racing to empty other technology shares.
“The hedge boxes reduce their exposure to global information technology shares at an accelerated pace, with the latest sales that were distinguished for the fastest decrease in six months, according to a memorandum issued by the main services office in Goldman Sachs,” luck.
However, the Morgan Stanley memo also revealed that the hedge funds are incredible for their short positions in both Apple and Google last week. This indicates that investors may not abandon the full 7, but they may manage their appearance on companies that have doubtful growth prospects.
This will be particularly logical for Tesla, given the future of the company that is not very certain. Many prominent investors, including his brother, sold shares over the past month or called on musk to step as a CEO.
Related: The Veteran Fund Director reveals the prediction of the S&P 500
