FAP, April 30 (editor Liu Rui) although last week's Meta results and phone performance once made the market doubt the prospect of artificial intelligence investment, the strong results of Google and Microsoft still revived Wall Street.Fierce34000Confidence.

Hedge funds, known as "smart money", increased their positions in US technology stocks last week at the fastest pace in more than a year, particularly accelerating the influx into the semiconductor industry, according to the data.

Hedge funds rushed into technology stocks last week.

Data compiled by Goldman Sachs Group's main brokerage firm showed last week's biggest net buying of US technology stocks since December 2022, driven by increased long positions and short covering.

Although the S & P 500 pulled back for most of April under the potential threat of a Fed delay in interest rate cuts, hedge funds have become net buyers of US tech stocks for the fourth week in a row. Especially last Thursday, Google's parent company Alphabet IncFierce34000. Investors' optimism about the fundamentals of the technology industry has further increased after strong results from Microsoft and Microsoft.

Seema Shah, chief global strategist at Principal Asset Management, said: "the long-term potential of technology stocks is very clear and almost indisputable. However, because the valuations of technology stocks are already quite high, many investors have been reluctant to increase their exposure recently, and the recent pullback just slightly cooled the valuations of technology stocks, creating an opportunity for investors to increase their positions. "

The S & P 500 information technology index has fallen for four weeks, its longest decline since September. The index rose 5.1% last week, finally announcing the end of the downward trend. Meanwhile, after Alphabet and Microsoft reported strong results and showed their prospects in artificial intelligence, the shares of both companies rose, especially as Alphabet's market capitalization soared to more than $2,000bn.

Buying is concentrated in the semiconductor industry.

Goldman Sachs analyst Vincent Lin and others wrote in the report that the excellent performance dispelled people's concerns. Apart from the lower-than-expected sales guidance issued by Meta platform, the S & P 500 has not been dragged down by other giants, he added.

Although there were inflows in almost all technology sectors, buying mainly went to semiconductors and semiconductor equipment companies.

Hedge funds' allocation to the semiconductor industry accounts for an average of 4.4 per cent of their us stock portfolios, up from 1.1 per cent at the start of the year, to the highest level in more than five years, according to Goldman Sachs.

Overall, hedge funds bought net US stocks last week at their fastest pace in about five months. It also pushed the S & P 500 to its best weekly performance since 2024, closing near 5100.

However, hedge funds saw more net selling in non-essential consumer stocks and mainly short selling in essential stocks.