Global Markets Investor(@GlobalMktObserv):Global AI equities are facing HEAVY SELLING PRESSURE: On Wednesday, global AI stocks recorded their 2nd-largest day of selling in at least 12 months. This was driven by long sales outpacing short sales by 3.5 to 1, pointing to investors dumping existing positions rather than adding shorts. The US accounted for 66% of sales, with South Korea and Taiwan also experiencing heavy liquidation. In effect, hedge funds’ allocation to global AI stocks has fallen to 26.1% from 31.7% in early June, in line with early January levels. After months of selling, hedge funds have now erased their cumulative purchases in AI stocks since the start of 2025. Institutional investors are running to the exit, is the AI Bubble bursting?

2026.10.16 12:22

Global AI equities are facing HEAVY SELLING PRESSURE: On Wednesday, global AI stocks recorded their 2nd-largest day of selling in at least 12 months. This was driven by long sales outpacing short sales by 3.5 to 1, pointing to investors dumping existing positions rather than adding shorts. The US accounted for 66% of sales, with South Korea and Taiwan also experiencing heavy liquidation. In effect, hedge funds’ allocation to global AI stocks has fallen to 26.1% from 31.7% in early June, in line with early January levels. After months of selling, hedge funds have now erased their cumulative purchases in AI stocks since the start of 2025. Institutional investors are running to the exit, is the AI Bubble bursting?