Hedge Funds Increase Holdings in Tech Giants, SPY ETF Sees Significant Buying in Q2 2025

Hedge funds have increased their holdings in leading tech firms, including Apple, Amazon, Nvidia, Microsoft, Meta, Alphabet, Tesla, and Broadcom. SPY was the most purchased ETF by hedge funds in Q2 2025, with $7.49 billion bought by Proficio Capital Partners. The trend reflects institutional investors' confidence in U.S. large-cap tech stocks, particularly those poised to benefit from secular trends in artificial intelligence and cloud computing.

In the second quarter of 2025, hedge funds significantly increased their investments in leading tech firms, reflecting a growing confidence in U.S. large-cap tech stocks, particularly those poised to benefit from secular trends in artificial intelligence and cloud computing. Key tech stocks such as Apple, Amazon, Nvidia, Microsoft, Meta, Alphabet, Tesla, and Broadcom saw substantial purchases, with the SPDR S&P 500 ETF (SPY) emerging as the most bought ETF by hedge funds in the quarter.

According to data compiled from 13F filings, hedge funds boosted their holdings in these tech giants, indicating a shift away from sectors such as defense and retail. Proficio Capital Partners, for instance, bought $7.49 billion worth of SPY, making it the most purchased ETF in Q2 [3].

The trend is part of a broader shift among top hedge funds, which have been doubling down on Big Tech and AI-related stocks. Coatue Management, for example, increased its stakes in Oracle and ARM while cutting positions in Alibaba, AMD, and Eli Lilly, reflecting a strategic pivot towards AI infrastructure and cloud plays [1]. Similarly, Bridgewater Associates, Tiger Global, and Discovery Capital have significantly increased their investments in Nvidia, Alphabet, Microsoft, and other tech stocks [1].

This shift is also evident in the performance of the S&P 500, which has seen a 10% gain so far this year, largely buoyed by the largest tech companies [1]. The focus on AI and cloud technologies underscores their growing importance in the investment landscape, with companies like Tencent reporting strong revenue growth driven by these sectors [2].

However, the key challenge for these companies is navigating regulatory risks and balancing long-term strategic investments with short-term profitability. For instance, Tencent faced rising costs, regulatory headwinds, and content-driven challenges despite reporting a 15% year-on-year revenue increase in Q2 2025 [2].

These developments suggest that hedge funds are increasingly focusing on tech stocks that offer long-term growth potential, particularly those in the AI and cloud sectors. As the market continues to evolve, investors should closely monitor these trends and the performance of these key tech stocks.

References:
[1] https://m.economictimes.com/tech/technology/hedge-funds-shift-bets-to-double-down-on-big-tech-amid-ai-boom/articleshow/123316525.cms
[2] https://www.ainvest.com/news/tencent-q2-2025-earnings-ai-gaming-sustain-high-growth-momentum-rising-costs-2508/
[3] https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/08/47189939/tesla-apple-amazon-among-hedge-fund-favorites-spy-emerges-as-top-etf-buy