Several high-profile hedge funds, including Tiger Global Management and Adage Capital Partners, trimmed stakes in leading AI-linked stocks during the fourth quarter of 2025, amid unease over stretched “Magnificent Seven” valuations, according to a report by Reuters.
The report cites US regulatory filings as showing that Tiger Global reduced holdings in key AI beneficiaries including Microsoft, Amazon and Nvidia, even as those positions remained among its largest. The hedge fund cut its Microsoft stake to 5.47 million shares, while modestly reducing exposure to Amazon and Nvidia, amid concerns that heavy AI-related capital spending may fail to deliver commensurate returns.
The moves come as investors reassess the lofty valuations of mega-cap technology firms that have powered equity market gains in recent years. The Magnificent Seven cohort — which also includes Meta Platforms and Alphabet — has faced increasing scrutiny as expectations for AI-driven growth remain high.
Adage Capital also disclosed small reductions across several AI-exposed names, including Microsoft, Amazon, Alphabet and Nvidia, while simultaneously increasing its stake in Oracle, suggesting a more selective approach to AI positioning.
Other prominent investors echoed the trend. Berkshire Hathaway reported trimming holdings in Apple and Amazon, while SoftBank Group disclosed it had fully exited its Nvidia position to fund further investments in OpenAI.
Meanwhile, quantitative hedge fund DE Shaw reduced exposure to Nvidia and Meta, but added to positions in Amazon and Advanced Micro Devices.
