The Semiconductor Index SOX is experiencing historic momentum, rallying for 14 consecutive trading sessions as demand from the artificial intelligence sector accelerates. Hedge funds are aggressively purchasing global technology stocks, with new long positions in semiconductors and related equipment signaling strong institutional demand, driving hedge fund exposure to tech to its highest level in five years.
The artificial intelligence boom is fueling a historic surge in semiconductor stocks. According to analysis, the Semiconductor Index, $SOX, has rallied for 14 consecutive trading sessions, marking the second-longest streak in its history.
This puts the index on track to exceed its record 15-day stretch set back in 2014. During this current 14-day streak, the $SOX has gained 34.4%, which represents its strongest run since 2002.
The index’s performance relative to the S&P 500 has reached an all-time high of 1.35. “The ratio is now 42% above the 2000 Dot-Com Bubble peak of 0.95,” the data outlined, highlighting the sector’s exceptional strength.
Concurrently, hedge funds are demonstrating aggressive appetite for the technology sector. Information shared shows hedge funds purchased global technology stocks more than any other sector recently.
This marked the first purchase of Information Technology names in five weeks, led by semiconductors, electronic equipment, and software. “This was primarily driven by new long positions rather than short covering, signaling genuine institutional demand rather than forced repositioning,” the analysis stated.
As a result, hedge fund gross and net exposure to global tech has risen significantly. Both metrics have reached their highest levels in five years, at 28.3% and 34.0% respectively.
