These Big Tech Stocks Fell Out of Favor With Large Investors Before the Global Sell-Off

Prominent investors including Bill Ackman and David Tepper cut their stakes in several big tech stocks during the second quarter, ahead of the global sell-off driven by recession fears at the start of the month, recent 13F filings showed.

The Securities and Exchange Commission (SEC) requires most firms with assets under management of $100 million or more to file a 13F form quarterly, disclosing their equity holdings.

Ackman, Tepper, and Daniel Loeb’s hedge funds trimmed their stakes in Google parent Alphabet (GOOGL) in the second quarter, along with other major hedge funds like Renaissance, Bridgewater Associates, and Seth Klarman’s Baupost Group. Tepper, Loeb, and others sold some of their Meta (META) holdings as well.

The large investors moved away from Alphabet and Meta as the companies face pressure to show their hefty spending on artificial intelligence (AI) is paying off.

Intel (INTC) also stood out as a number of hedge funds cut their stakes in the second quarter. The chipmaker’s stock tumbled after the company recently reported a wider-than-expected loss and a $10 billion cost-saving plan that includes layoffs.

Warren Buffett’s Berkshire Hathaway (BRK.A) (BRK.B) has significantly trimmed its stakes in Apple (AAPL), though the iPhone maker’s stock still represents Berkshire’s largest holding. Some like Renaissance bought shares of Apple, while Dan Loeb’s Third Point added a stake in Apple during the period.

Meanwhile, several hedge funds including Bridgewater, Renaissance, and Tepper’s Apaloosa boosted their holdings in AI chipmaker Nvidia (NVDA), which could benefit from higher spending on AI infrastructure.