Technology stocks were among hedge funds’ top trades last week, with buying activity accelerating at the fastest pace in almost three months, according to a report from Reuters citing a client note from Goldman Sachs.

The report says hedge fund exposure to technology stocks is now hovering near record highs, driven largely by continued optimism around artificial intelligence-related businesses, particularly semiconductor and chipmakers.

The report also notes the strongest buying was concentrated in North America and Asian emerging markets, while software companies also attracted fresh inflows from speculative investors. At the same time, hedge funds reduced exposure to communications equipment and IT services firms.

The latest positioning suggests investors remain confident in the long-term AI growth story despite broader macroeconomic uncertainty and geopolitical tensions linked to the Iran conflict.

According to Goldman Sachs Prime Brokerage data, hedge fund allocations to global information technology stocks have reached their highest levels relative to the MSCI World Index in more than five years, with some positioning now at record highs since the bank began tracking the data in 2016.