Major Hedge Funds Trim Nvidia, Alphabet Stakes in Q3 2025 Filings

• Bridgewater Associates slashed its Nvidia stake by nearly two-thirds to 2.5 million shares.

• Coatue Management trimmed Nvidia exposure by 14.1%, while increasing bets on other tech areas.

• Berkshire Hathaway initiated a $4.3 billion position in Alphabet, continuing to reduce Apple holdings, per regulatory disclosures through September 30, 2025.

Hedge funds cut Magnificent Seven tech positions in Q3 2025 amid market gains. Discover key moves by Bridgewater, Coatue, and Buffett’s Berkshire in 13F filings. Stay informed on Wall Street shifts.

What Did Hedge Funds Do with Magnificent Seven Holdings in Q3 2025?

Hedge funds substantially reduced their positions in the Magnificent Seven tech stocks during the third quarter of 2025, as revealed in 13F regulatory filings released on Friday. Major players like Bridgewater Associates and Coatue Management cut stakes in Nvidia, Alphabet, Amazon, and Meta to manage risk amid cooling AI hype and shifting valuations. This pullback contrasted with broader market gains, including an 8% rise in the S&P 500 and a 9% climb in the Nasdaq 100, driven by expectations of interest rate cuts that lowered 10-year Treasury yields by about seven basis points.

How Did Bridgewater and Other Funds Adjust Nvidia and Payments Positions?

Bridgewater Associates, led by Ray Dalio, which posted strong performance in the first nine months of 2025, reduced its Nvidia holding by nearly two-thirds to 2.5 million shares and halved its Alphabet stake to 2.65 million shares. The firm boosted investments in Adobe, Dynatrace, and Etsy, focusing on software and online platforms, while increasing its position in payments processor Fiserv prior to the company’s disappointing earnings report. Fiserv subsequently lowered its revenue guidance for the second consecutive quarter, leading to a $30 billion drop in its market capitalization in a single day, according to market data. Discovery Capital, managed by Rob Citrone, also entered Fiserv before the decline and added new positions in Alphabet, Cigna, Elevance Health, and steel producer Cleveland-Cliffs. Lone Pine Capital decreased its Meta stake by 34.8%, and Tiger Global made a more aggressive cut of 62.6% in the same stock. These adjustments highlight a strategic pivot away from overheated AI investments toward more diversified sectors like healthcare and materials.

Frequently Asked Questions

What prompted hedge funds to dump tech holdings in Q3 2025?

Hedge funds reduced tech positions due to cooling AI enthusiasm and elevated valuations after a strong second quarter buildup. Regulatory 13F filings show shifts to sectors like application software and e-commerce as managers sought to lower risk while markets advanced on rate cut expectations.

Did Warren Buffett’s Berkshire Hathaway make notable tech moves in Q3 2025?

Yes, Berkshire Hathaway established a new $4.3 billion stake in Alphabet during the quarter, marking a significant entry into the stock. At the same time, the firm continued trimming its Apple position, reflecting a broader reallocation in its equity portfolio as disclosed in 13F filings.

Key Takeaways

• Tech Pullback Amid Gains: Despite market upticks, hedge funds cut Magnificent Seven exposure to mitigate risks from AI valuation peaks.
• Sector Rotation: Capital flowed into software, payments, and healthcare, with Bridgewater’s Fiserv bet illustrating pre-earnings optimism turned sour.
• Berkshire’s Strategic Shift: Buffett’s new Alphabet investment signals confidence in search and AI, while reducing long-held Apple shares.

Conclusion

The third quarter of 2025 marked a pivotal moment for Wall Street hedge funds, with widespread reductions in Magnificent Seven holdings like Nvidia and Meta giving way to targeted investments in payments and software sectors, as detailed in 13F filings. This repositioning by firms such as Bridgewater Associates, Coatue Management, and Berkshire Hathaway underscores a cautious approach to tech amid broader market momentum. As economic indicators like falling bond yields influence future strategies, investors should monitor upcoming quarters for continued evolution in portfolio allocations and potential opportunities in underrepresented areas.