Hedge Funds Double Down on Tech and Semiconductors Amid Macro Risks — HAZELTREE FUND SERVICES, INC.

Event summary

Hedge funds increased long positions in technology and semiconductor companies in May 2026, despite persistent macro risks.
The PHLX Semiconductor Sector Index saw net long positioning rise from 57% in April to 60% in May.
NXP Semiconductors' long-to-short fund count ratio nearly doubled from 2:1 in April to 4:1 in May.
Texas Instruments flipped from short-biased to long-biased in May.
Crowding remains most pronounced on the long side in Nvidia, followed by Broadcom and Applied Materials.

The big picture

Hedge funds continued to favor growth-oriented sectors, particularly technology and semiconductors, despite lingering concerns about inflation, energy prices, and geopolitical tensions. This trend reflects a broader market rally, with major benchmarks like the MSCI World Index, S&P 500, and Nasdaq Composite closing near record highs. The strategic focus on semiconductors underscores their critical role in AI and other high-growth areas, driving significant long positioning in key players like Nvidia and Broadcom.

What we're watching

Sector Rotation: Whether hedge funds can sustain their bullish stance on technology and semiconductors amid ongoing macroeconomic uncertainties.
Market Volatility: How persistent inflation, rising energy prices, and geopolitical tensions will impact hedge fund positioning in these sectors.
Performance Metrics: The pace at which semiconductor stocks like Nvidia, Broadcom, and Applied Materials can maintain their strong performance.