The disclosed changes in US institutional investors' 13F holdings in the third quarter reveal that hedge funds are adjusting their portfolio allocations within the AI industry chain. By sector, chip equipment and manufacturing saw the largest net selling at $3.11 billion, followed by AI networking, optics, and storage at $2.88 billion; AI chips and memory saw net selling of $962 million. On the other hand, cloud enterprise software saw the largest increase in holdings, with net buying of $2.13 billion, and AI and data software saw net buying of $827 million. Overall, the disclosed holdings show signs of a shift from the AI hardware supply chain to cloud software and data applications, indicating that institutions are reassessing the investment returns of different segments of the AI industry chain and reallocating their positions within the chain.
