UBS: After Historical-Level Sell-Off, Suggest Gradually Rebuilding AI and Semiconductor Stock Positions

Odaily Planet Daily News According to UBS prime brokerage data, hedge funds have reduced their long positions in momentum and semiconductor stocks by approximately 5% of total market capitalization, marking one of the largest reductions on record. Net holdings in semiconductor and software stocks have retreated to April levels. UBS believes the sell-off in momentum stocks is nearing its end, predicting it will bottom out by the end of July, and advises investors to gradually rebuild positions in AI and semiconductor stocks. The recent gains in cyclical stocks such as banks and industrials have mainly been driven by short covering. If capital returns to AI, these sectors could face downward pressure. (Cailianshe)