Hedge funds are cutting their stakes in large-cap technology stocks, shifting their focus to a broader range of companies that are involved in, or stand to benefit from advancements in AI, according to analysis from Goldman Sachs.  In a note dated 21 May, Ben Snider, a senior strategist on the US portfolio strategy team in Goldman Sachs’ research division, wrote: “Among the various phases of the AI trade, firms exposed to AI infrastructure investment have recently performed best and captured the most interest in our client conversations.”   Goldman Sachs’ analysis of 707 hedge funds with $2.7tn in equity positions reveals that funds increased their positions in Apple but decreased those in Nvidia, Alphabet, Amazon, Microsoft and Meta. Stakes in Tesla were kept roughly the same.  Instead, AI infrastructure-related stocks including chipmaker Marvell Technology, technology supply-chain services company TD Synnex, electric utility AES and circuit-protection device manufacturer Littelfuse saw the most significant increase in popularity, according to Snider.  Hedge funds also upped their stakes in companies that could directly benefit from AI technology, such as software company Adobe, pharmacy giant Walgreens Boots Alliance and insurance company First American Financial Corporation.  Despite these shifts, the Magnificent Seven, excluding Tesla, continue to be the most popular long positions for hedge funds.