Long Chips or Long Disappointment

The global equity market has narrowed into a singular trade focused on AI and semiconductors, with hedge fund exposure reaching record percentiles.

Key Takeaways

• 1.The current equity market rally is extremely narrow, driven almost exclusively by AI capex and semiconductor stocks.
• 2.Hedge funds have shown extreme divergence in positioning, buying AI-related industries while selling almost all other sectors since late 2025.
• 3.The S&P 500 (SPY) is outperforming its equal-weighted counterpart by the widest margin in over two decades, signaling high market concentration.

Table of Contents

• Long chips or long disappointment
• New ATH
• Semis buying
• One trade
• 100th percentile
• Tech inflow
• Largest in 24 years
• Bro's separated

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