On May 25, Goldman Sachs' research team pointed out that as we approach the second quarter of 2026, hedge funds and mutual funds are increasingly shifting their holdings towards the semiconductor subsector while reducing their allocations in the software sector. This trend is driven by growing investor concerns that artificial intelligence may disrupt traditional software service companies, prompting them to withdraw from related positions. Analysts found that Microsoft is one of the stocks with the largest reduction in net holdings by hedge funds and mutual funds. While hedge funds have generally reduced their holdings in most of the 'seven giants,' they have increased their net positions in Meta and Apple. Within the semiconductor sector, analysts noted that hedge funds have increased their holdings in Lam Research, Applied Materials, and ASML, while mutual funds have increased their positions in Intel and SiTime.