Hedge funds have been pulling back from U.S. tech stocks at an unprecedented pace over the past two months, according to a report from the Prime Services desk of Goldman Sachs.

The data, led by Vincent Lin, show that hedge funds were net sellers in the tech sector for six out of the last eight weeks, leading to a 10% drop in the cumulative market value of their positions.

The sell‑off is most pronounced in the semiconductor, memory chip, and AI infrastructure sectors, where long positions are being reduced and signs of capitulation selling are emerging.

Sustained volatility and steep declines in these areas have driven the massive sell‑off since early June, underscoring a cautious outlook for U.S. technology stocks.

Investors appear to be rebalancing portfolios, trimming exposure to high‑beta tech names as risk premiums rise. The decline in market value of tech holdings also reflects broader concerns about supply‑chain constraints, regulatory scrutiny, and macro‑economic uncertainty, all of which could keep selling pressure in place.

The Goldman Sachs Prime Services team notes that the pace of selling continues to accelerate, and if the trend persists, it could signal a shift toward more defensive sectors in the coming months.