Morgan Stanley's Wilson Urges Rotation From Chips to Hyperscalers as Hedge Funds Dump Semis for 4th Week
- Mike Wilson's call to rotate from semiconductors to the hyperscaler cloud platforms is gaining hard-data confirmation: Reuters/Goldman Sachs prime-brokerage data shows hedge funds dumped chip stocks for a fourth consecutive week through early July.
- Chip stocks were the most net-sold US subsector in Goldman's client base over the past month, while AI-semibasket exposure still sits near all-time highs — suggesting profit-taking rather than a regime shift away from the AI theme.
- Broad index/ETF shorts by hedge funds have simultaneously climbed to a 10-year high, with gross leverage at a five-year peak — a setup that amplifies any AI-trade unwind (Reuters, finviz 07:15AM).