Chinese hedge funds rotate out of Nvidia and US hyperscalers in AI trade - South China Morning Post

Chinese hedge funds are shifting their overseas investment strategies, reducing positions in major US hyperscalers such as NVIDIA, Meta, and Amazon, while increasing investments in hardware manufactur... Read original →

Chinese hedge funds are divesting from US AI giants like NVIDIA and Meta, reallocating capital toward semiconductor hardware firms along the AI supply chain, signaling a shift from speculative to value-driven investment. Companies such as Micron and SanDisk are gaining traction due to improved margins and sustained demand. This realignment reflects a broader industry trend where upstream equipment makers—such as ASML’s EUV lithography systems—and midstream chip producers are capturing greater value. Regulatory and geopolitical tensions, particularly in the semiconductor sector, are increasing supply chain risks, pushing firms to localize production. In response, global tech firms may pivot toward hardware-focused strategies. Over the next 12–24 months, investment will increasingly emphasize profitability and production efficiency over growth metrics, as capital becomes more selective in the AI infrastructure space.