Institutional investors sharply increased their exposure to semiconductor and AI-related stocks during the first quarter of 2026, according to Reuters’ analysis of thousands of SEC 13-F filings. The data highlights how large hedge funds, pension funds, and asset managers positioned themselves ahead of the massive AI-driven rally that continued into the second quarter.
The biggest buying interest centered on semiconductor companies. Nearly 5,000 institutional investors reported purchasing shares in at least one major chipmaker. Among the strongest favorites was Micron Technology Inc. (MU), whose stock surged 154% year-to-date due to booming demand for memory chips used in artificial intelligence infrastructure. Around 2,440 institutions initiated new positions in Micron, including Rockefeller Capital Management and Schroder Investment Management.
Another major institutional target was Intel Corporation (INTC), which experienced a dramatic 195% rally as investors bet on its turnaround strategy and growing role in AI hardware production. Major firms such as Tiger Global Management, Neuberger Berman, and MetLife Investment Management all disclosed new positions in Intel during the quarter.
Institutional buying also spread across storage and data infrastructure companies tied to AI demand. Northern Trust Corporation initiated new stakes in:
- Seagate Technology Holdings plc (STX)
- Western Digital Corporation (WDC)
- Intel
- Micron
Both Seagate and Western Digital benefited from rising AI data-center demand, with their shares climbing roughly 188% and 179% respectively during the year.
The broader AI infrastructure sector also attracted aggressive institutional accumulation. More than 4,000 institutions either added to existing positions or opened new stakes in companies that support AI deployment and cloud infrastructure, including:
- Oracle Corporation (ORCL)
- Arista Networks Inc. (ANET)
- Vertiv Holdings Co. (VRT)
Only a small minority of investors reduced exposure to this theme, underscoring the market’s strong conviction in long-term AI infrastructure spending.
Utilities and data-center operators also became major institutional targets because AI systems require enormous amounts of electricity. Nearly 3,800 institutions increased or initiated utility-sector holdings, while virtually none reported meaningful reductions in exposure. Investors increasingly view electric utilities as indirect beneficiaries of the AI boom because hyperscale data centers are dramatically increasing energy demand.
However, institutional investors appeared more selective regarding the so-called “Magnificent Seven” mega-cap technology companies. According to the filings, sellers slightly outnumbered buyers in companies such as:
- Meta Platforms Inc. (META)
- Microsoft Corporation (MSFT)
This caution reflected concerns during the first quarter about whether the largest AI companies could sustain extremely high levels of capital spending while maintaining profit growth.
One notable move came from billionaire investor Bill Ackman and his hedge fund Pershing Square Capital Management, which initiated a new position in Microsoft after recent weakness in the stock. Ackman reportedly funded the purchase partly by reducing his long-held position in Alphabet Inc. (GOOGL).
Institutional interest also extended into speculative AI-related software names. Among investors initiating new positions in Palantir Technologies Inc. (PLTR) was Mubadala Capital, the sovereign wealth investment arm of the UAE, which disclosed a stake valued at approximately $9.9 million.
Mubadala also opened a position in Shopify Inc. (SHOP). However, the broader software-as-a-service sector faced heavier institutional selling pressure during the quarter because investors feared AI could disrupt existing software business models and compress profit margins. Reuters found that among a group of 20 major U.S.-listed SaaS companies, institutions were overall more likely to sell than buy, with hundreds of funds fully liquidating positions.
Overall, the filings reveal several major themes shaping institutional positioning in 2026:
- Strong confidence in semiconductor and AI infrastructure growth
- Rising investor focus on data centers and electricity demand
- More selective positioning in mega-cap AI leaders
- Growing differentiation between AI beneficiaries and potential AI disruptors
- Continued institutional rotation toward companies directly tied to AI hardware and infrastructure rather than traditional software businesses
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