Hedge funds increased their short selling of AI-related stocks in July, according to a report from financial data analytics platform Hazeltree. The report shows that hedge funds boosted short positions in server maker Super Micro Computer, as well as AI infrastructure companies CoreWeave and Nebius Group, with these three names ranking among the top ten most shorted stocks by over 700 hedge fund clients of Hazeltree. For semiconductor giant Nvidia, funds trimmed long positions and added to shorts, though the overall fund community remained net long. In July, semiconductor stocks turned volatile amid concerns over valuations and earnings sustainability, with the Philadelphia Semiconductor Index falling 20 percent and South Korea's KOSPI dropping 22 percent, both marking their biggest monthly declines since 2008. Hazeltree noted that investors have not completely abandoned AI-related stocks, but rather some are taking profits and reducing leverage while rotating capital into companies showing signs of monetization.
CoreWeave, Inc. Class A Common Stock
NVIDIA Corporation
Super Micro Computer Inc