Full Breakdown
Chinese Hedge Funds Pivot From U.S. Hyperscalers to AI Hardware Makers
8/17/2026, 7:59:44 AM
Shift in Investment Strategy
In the second quarter, China’s largest hedge funds rebalanced their overseas portfolios, cutting exposure to U.S. hyperscale cloud providers and Nvidia while adding stakes in companies that supply the physical components of artificial-intelligence (AI) data centres. The moves reflect a broader reassessment of where economic rent will accrue as the AI ecosystem matures.
Key Hedge Funds and Portfolio Changes
- Perseverance Asset Management International reduced its Nvidia holding by 72 % in the latest filing to the U.S. Securities and Exchange Commission.
- The Hong Kong arms of Greenwoods Asset Management Hong Kong and Oriental Harbor Investment similarly trimmed positions in major tech stocks.
- All three funds increased holdings in memory-chip producer Micron Technology and flash-memory maker SanDisk, both of which benefit from the expanding demand for AI-focused hardware.
These adjustments were disclosed in the funds’ 13F filings, indicating a coordinated shift among mainland-backed managers toward firms that produce memory chips and optical transceivers used in AI infrastructure.
Market Context and Rationale
Observers note that investors are growing cautious about hyperscalers’ heavy capital outlays on AI projects, questioning whether such spending will translate into sustainable monetisation. By contrast, hardware manufacturers have experienced a “roll” in share prices over recent months as the AI build-out intensifies. The transition suggests a move from a broad “buy-everything-exposed-to-compute” approach to a more selective strategy that targets firms likely to capture lasting value from the AI supply chain.
Verbatim Quotes
- “This is the point where the AI trade begins growing up,” — Stephen Innes, a managing partner at SPI Asset Management.
