Carpe Diem

Tag: momentum investing

AI stock rocket pulled toward Earth by valuation gravity as hedge funds unwind crowded semiconductor and technology trades.

🎩 Hedge Funds Got Crushed by the AI Trade. We Had One Warning: Price Still Matters.

Goldman’s Hedge Fund VIP basket suffered its worst monthly relative performance in more than 20 years as the crowded AI trade violently unwound. Seven weeks earlier, FUNanc1al warned that semiconductor stocks were priced for exceptional execution. Three investing lessons survived the carnage.

 

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Tags: Carpe Diem, Citadel, crowded trades, FUNanc1al, Goldman Sachs, Hedge Fund VIP, hedge funds, investing lessons, Ken Griffin, Leopold Aschenbrenner, leverage, momentum investing, risk management, semiconductor investing, semiconductor stocks, Shiller CAPE, Situational Awareness, stock market, stock market valuation, technology stocks
Cinematic illustration of hedge fund managers stampeding toward glowing semiconductor AI chips on a Wall Street trading floor while neglected software stocks sit abandoned in the shadows, symbolizing momentum investing and crowded trades.

🚀 The Pros Play Amateurs

Wall Street has officially gone “all-in” on semiconductors. Hedge fund exposure to chip stocks has doubled in 2026 while software allocations collapsed to multi-year lows. Momentum is roaring — but history suggests crowded trades can become dangerous when everyone suddenly agrees.

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Tags: AI boom, BNP Paribas, Carpe Diem, contrarian investing, featured-hedge, FUNanc1al, Goldman Sachs, hedge funds, hub-hedge, investing psychology, Kobeissi Letter, momentum investing, semiconductor rally, semiconductor stocks, software stocks, software valuation, SOXX ETF, stock market, Susquehanna, tech investing, Wall Street