Major U.S. hedge funds are once again buying mega-cap technology stocks known as the “Magnificent 7” following blowout first-quarter financial results from chipmaker Nvidia (NVDA).
Investment bank Goldman Sachs (GS) reports that hedge funds’ exposure to the largest U.S. technology companies has hit a record high after Nvidia’s latest earnings report.
An analysis by Goldman Sachs shows that the so-called Magnificent Seven stocks now account for 20% of hedge funds’ total exposure to U.S. stocks, the highest percentage ever.
In addition to Nvidia, the Magnificent 7 stocks include Apple (AAPL), Amazon (AMZN), Meta Platforms (META), Tesla (TSLA), Microsoft (MSFT, and Alphabet (GOOGL/GOOG).
Nvidia’s Q1 results showed its sales rose more than 200% year over year, while its profit rose more than 600%. The company raised its dividend 150% and announced a 10-for-1 stock split.
Since the Q1 print, Nvidia’s stock has risen 20%, lifting other mega-cap technology stocks along with it.
Over the last 12 months, Nvidia’s share price has gained 186% and currently trades at $1,148.25 U.S. per share. The stock split is scheduled to take place on June 10 of this year.
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