Hedge funds showed great enthusiasm toward tech stocks tied to artificial intelligence during the second quarter, including Nvidia , according to Goldman Sachs. The Wall Street investment bank analyzed the holdings of 744 hedge funds with $2.4 trillion of gross equity positions at the start of the third quarter, based on regulatory filings. Goldman equity analysts then identified 11 stocks as near-term AI beneficiaries. The smart money hedge funds continued to load up on Nvidia at a rapid pace last quarter following the chipmaker’s blowout forecast. Appaloosa Management’s David Tepper hiked his stake in Nvidia drastically, making it his biggest holding at the end of June, worth $432 million. Hedge funds also piled into Big Tech names Microsoft , Meta and Amazon, which all have recently developments surrounding AI. Microsoft has announced a multiyear, multibillion-dollar investment in ChatGPT maker OpenAI. Meta recently unveiled its own AI computer chips . A number of hedge funds also added a lesser known semiconductor name — Credo Technology — last quarter. The stock is up about 13% this year. Semiconductor companies that manufacture advanced chips have been popular this year as investors chase the AI boom. Marvell Technology is also one of hedge fund darlings recently, according to Goldman. Also on the list were software and cloud players Adobe and Salesforce . Starboard Value’s Jeffrey Smith said there’s more room for Salesforce to grow and the stock can rally another 30% on the back of the AI boom. He famously took an activist stake in 2022. — CNBC’s Michael Bloom contributed reporting.
