Software stocks are a mass exodus:

Software stocks as % of total US hedge fund net exposure is down to 4.5%, the lowest on record.

This percentage has declined -12 points since the mid-2023 peak.

Over the same period, semiconductor and semiconductor equipment stock net exposure has surged +7 percentage points, to a record 8%.

Furthermore, cumulative net buying of semiconductor stocks by hedge funds is up to +35% of the total industry's January 2025 market value.

At the same time, cumulative net selling of software stocks fell to -8%.

Hedge funds are ditching software for chip stocks at a record pace.