Goldman Sachs unveils the secrets of $93 trillion in AI holdings: hedge funds and mutual funds are "on the same road but in different vehicles," while chips and software showcase extreme differentiation.

Goldman Sachs Group, Inc.'s latest portfolio analysis report reveals a clear divergence signal: while both hedge funds and mutual funds are increasing their investments in the AI sector, they are heading in completely opposite directions regarding specific stock selections. As of early Q3 2026, Goldman Sachs Group, Inc. analyzed the holdings of 991 hedge funds (total equity holdings of approximately $5.4 trillion) and 504 large-cap actively managed mutual funds (total equity assets of approximately $4.6 trillion). The analysis showed that hedge funds are overall more deeply exposed to AI trades than mutual funds, but have taken contrasting paths with large tech stocks and semiconductor stocks. Overall Landscape: Hedge Funds 'All in AI,' Mutual Funds Remain Severely Underweight Goldman Sachs Group, Inc.'s quarterly "Hedge Fund Trend Monitoring Report" and "Mutual Fund Fundamentals Report" show that, as of early Q3 2026, the reports cover a total of 991 hedge funds (holding total equity positions of $5.4 trillion) and 504 large-cap actively managed mutual funds (holding equity assets of $4.6 trillion), resulting in a combined analysis of approximately $9.3 trillion in holdings. In general, hedge funds' exposure to AI trades remains significantly higher than that of mutual funds, though both types of institutions made significant adjustments to their AI stock holdings in Q2 2026. Hedge fund portfolios remain closely tied to AI trades, with recent returns closely associated with the performance of their key holdings, which have shown high volatility linked to AI trades. Although mutual funds have increased their stakes in AI infrastructure stocks, the increase has not kept pace with the benchmark index's weight, leading to a substantial underweight position in the AI sector for mutual funds. This divergence is most evident among large tech stocks. Recent months have shown a high correlation between hedge fund returns and the performance of these key holdings, as well as the volatility of AI trades. Large Tech Stocks: The Four Giants Going Their Separate Ways In Q2, hedge funds bought Microsoft Corporation (MSFT.US) and Amazon.com, Inc. (AMZN.US), while mutual funds reduced their holdings in these two stocks. Microsoft Corporation and Amazon.com, Inc. were the only two large AI tech stocks that saw increases from hedge funds in Q2. At the same time, hedge funds reduced their stakes in several other large AI companies, including Alphabet (GOOGL.US), Meta Platforms (META.US), NVIDIA Corporation (NVDA.US), Broadcom Inc. (AVGO.US), Lam Research Corporation (LRCX.US), Marvell Technology, Inc. (MRVL.US), Cisco Systems, Inc. (CSCO.US), Hewlett Packard Enterprise Co. (HPE.US), and Applied Materials (AMAT.US). Hedge funds increased their positions in Lam Research, Applied Materials, and ASML Holding NV ADR (ASML.US), while mutual funds increased their risk exposure to Intel Corporation (INTC.US) and SiTime (SITM.US). Semiconductors and Memory: Mutual Funds 'Bottom Fishing,' Hedge Funds 'Retreat' In the semiconductor and memory trades, the two institutions also exhibited opposing strategies. Mutual funds bought shares of AMD (AMD.US), Micron Technology, Inc. (MU.US), and SanDisk (SNDK.US), while hedge funds sold these three stocks during the same period. This divergence is particularly noteworthyAMD, Micron, and SanDisk are all stocks that experienced significant volatility during the AI hardware pullback in Q2, with mutual funds choosing to increase positions against the tide, while hedge funds opted to lock in profits or reduce their risk exposure. Notably, Goldman Sachs Group, Inc. data shows that among all AI-related stocks tracked, NVIDIA Corporation (NVDA.US) had the largest underweight among mutual funds, with an average underweight of approximately 100 basis points. AMD's underweight was around 60 basis points. Major Consensus: AI Infrastructure Creates a 'Unified Front' Despite significant divergences at the individual stock level, both types of institutions reached broad consensus in the AI infrastructure domain. Goldman Sachs Group, Inc. identified 12 AI infrastructure stocks that both hedge funds and mutual funds increased their stakes in during Q2: American Electric Power Company, Inc. (AEP.US), AXT (AXTI.US), Bloom Energy (BE.US), CoreWeave (CRWV.US), Flex (FLEX.US), Lion Electric (LGN.US), NiSource (NI.US), Sanmina (SANM.US), SiTime, Seagate Technology Holdings PLC (STX.US), Talen Energy (TLN.US), and Xcel Energy (XEL.US). Both groups also jointly bought shares of Bloom Energy, Flex, and Seagate Technology Holdings PLC, becoming the most explicit intersection of the two institutions in the AI field. Bloom Energy and Flex provide the power and manufacturing infrastructure for AI data centers, while Seagate Technology Holdings PLC directly benefits from the explosive growth of AI storage demand. However, despite significantly increasing the weight of AI infrastructure stocks this year, mutual funds have still not kept pace with the growth in benchmark index weight, leading to an overarching underweight position in the entire AI sector. NVIDIA Corporation exemplifies this underweight trend. Capital Outflow: Which AI Stocks Have Been Abandoned by Both Types of Institutions? Both investor groups also reduced their holdings in a series of AI-related stocks, including Viavi Solutions (VIAV.US), Digital Realty Trust (DLR.US), Argan (AGX.US), MasTec (MTZ.US), Corning Inc. (GLW.US), and EQT (EQT.US). Conversely, Comfort Systems USA (FIX.US) is a typical example of a stock that mutual funds bought while hedge funds weakened their positions. A 'Unified Front' Outside of AI: Historical Overweight in the Financial Sector Beyond AI holdings, data from Goldman Sachs Group, Inc. reveals an even more historically significant signal: both hedge funds and mutual funds are currently overweight in the financial sector, a situation that has only occurred for the third time in Goldman Sachs Group, Inc.'s historical data. In Q2, hedge funds increased their net overweight in the financial sector by more than 300 basis points, reaching the highest level since before the global financial crisis; mutual funds also elevated their overweight in the financial sector to its highest level since at least 2012. The large-cap financial stocks jointly increased by both types of institutions include: Capital One Financial (COF), Corpay (CPAY), Fiserv (FI), and Interactive Brokers Group, Inc. Class A (IBKR). Goldman Sachs Group, Inc. also identified six "shared favorite" stockspopular holdings in both hedge fund and mutual fund portfolios: Boeing Company (BA), Capital One Financial (COF), Mastercard (MA), SpaceX (SPCX), Thermo Fisher Scientific Inc. (TMO), and Visa (V). This rolling "shared favorite" portfolio has achieved a cumulative return of 29% year-to-date, outperforming the S&P 500 equal-weight index's return by 16%. Both types of institutions are also significantly overweight in the healthcare sector, but there are divergences in their consumer sector allocations: hedge funds are overweight in consumer discretionary and underweight in consumer staples, while mutual funds take the opposite approach. Conclusion Goldman Sachs Group, Inc.'s portfolio analysis reveals an emerging new market order: on the mainline of AI trades, hedge funds and mutual funds are walking "the same road but in different vehicles"mutual funds are actively positioning themselves in the AI infrastructure sector, while hedge funds choose to lock in profits in large tech stocks and semiconductors; both parties experience intensified divergence during the AI hardware pullback but reach a rare consensus in the financial sector. As NVIDIA Corporation's earnings report and the Jackson Hole meeting approach, this $9.3 trillion investment landscape in AI is laying the groundwork for the next phase of market direction. The volatility of AI trades is highly tied to hedge fund returns, while mutual funds still face a significant underweight gap in the AI sectorthis suggests that whether the next move in AI trades is upward or a deep pullback, it will trigger an unprecedented wave of institutional reallocation.