Wall Street’s biggest hedge funds are once again putting their chips on Big Tech, betting that artificial intelligence and cloud computing will drive the next wave of market gains. In the second quarter of 2025, titans like Bridgewater Associates, Tiger Global Management, Discovery Capital, and Coatue Management ramped up their exposure to tech giants and AI infrastructure, signaling renewed confidence after a period of caution earlier this year.
According to recent 13F filings analyzed by The Economic Times and AInvest, this pivot marks a dramatic shift from the wary stance hedge funds took in early 2025. Back then, fears about inflation, market volatility, and a potential AI bubble led many top managers to trim their tech holdings. But as the AI boom proved more durable than skeptics expected, money managers have raced back, often doubling down on the very stocks they previously abandoned.
Bridgewater Associates, the world’s largest hedge fund founded by Ray Dalio, exemplified this new momentum. By the end of June, Bridgewater had more than doubled its stake in Nvidia, the chipmaker at the heart of the AI revolution, amassing 7.23 million shares worth $1.14 billion. The fund also boosted its positions in Alphabet (up 84.1%) and Microsoft (up 111.9%), now holding $987 million and $853 million in those tech stalwarts, respectively. Other AI-related bets included Broadcom (up 102.7%) and Palo Alto Networks (up 117%), underscoring the fund’s confidence in the sector’s future.
Discovery Capital, led by Rob Citrone, also made bold moves in the quarter. The fund doubled its stake in America Movil, acquiring 2.65 million shares valued at about $95 million, as part of a broader strategy to diversify beyond U.S. tech. Yet Discovery remained bullish on American innovation, more than doubling its stake in Meta Platforms (the parent of Facebook) and taking a fresh position in Nvidia-backed cloud provider CoreWeave. The fund also increased its holding in UnitedHealth Group by 13%, despite the insurer’s stock being down 46% this year due to rising costs, a Department of Justice probe, a cyberattack, and the high-profile shooting of former executive Brian Thompson in December 2024.
Tiger Global Management, run by Chase Coleman, followed suit, snapping up shares in several Magnificent Seven companies. By the end of June, Tiger Global’s Amazon holdings had swelled to roughly 10 million shares, worth $2.34 billion. The fund also increased its stakes in Alphabet, Nvidia, Microsoft, and Meta, and added over 800,000 shares in chip equipment supplier Lam Research Corp, pushing its holding there to 5.26 million shares valued at $512 million.
Meanwhile, Philippe Laffont’s Coatue Management made headlines with a strategic realignment toward AI infrastructure and cloud computing. On August 15, 2025, Coatue revealed it had acquired roughly 3.86 million shares of Oracle, worth about $843.3 million. The firm also took new positions in Arm Holdings and CoreWeave, with its stake in the latter now valued at $2.9 billion. Coatue’s moves included trimming or exiting positions in AMD, Alibaba, Eli Lilly, Monolithic Power, and Super Micro, reflecting a clear pivot to tech’s hottest growth engines.
Oracle’s surge this year has been nothing short of remarkable. Based in Austin, Texas, the company has cemented its place as a global leader in enterprise software and cloud solutions, riding a 47% year-to-date stock price rally. The company’s momentum stems from surging demand for its cloud computing and AI services, as well as major partnerships with AWS, Microsoft Azure, and Google Cloud. In 2025, Oracle hit an all-time high, driven by blockbuster AI projects and a key cloud deal that put it among the world’s top cloud providers.
Oracle’s Q4 2025 earnings report underscored this strength. The company posted $15.9 billion in revenue, up 8% year-over-year, and delivered earnings per share of $1.35, beating analyst expectations. The real star was cloud revenue, which soared 27% to $6.7 billion. Infrastructure-as-a-Service revenue jumped 52%, while SaaS climbed 12%. Future bookings, a key measure of demand, leapt 41% to $138 billion, and operating cash flow rose 12% to $20.8 billion for the year.
Management is bullish on the future. CEO Safra Catz projects total cloud growth above 40% in fiscal year 2026, compared to 24% in 2025. Chairman Larry Ellison, never one to shy away from bold predictions, expects triple-digit growth in multi-cloud database revenue from partners like AWS, Google, and Microsoft Azure. Oracle is also investing heavily in AI infrastructure, building a massive Nvidia-powered data center and signing $3 billion in new cloud-GPU contracts. The company recently expanded its Google Cloud partnership to include Gemini 2.5 AI models, allowing customers to use top AI tools from multiple providers via Oracle’s platform.
One of the most eye-catching developments is Oracle’s expected role in the Stargate Project, where it will supply 4.5 gigawatts of data center power to OpenAI. This deal could generate $30 billion to $60 billion annually, highlighting how cloud and AI providers are at the forefront of the tech race. No wonder Evercore ISI recently dubbed Oracle the "fourth global hyperscaler" alongside AWS, Google Cloud, and Microsoft Azure, citing a $30 billion AI cloud deal by 2028 and accelerating revenue momentum.
Other major hedge funds are also betting on healthcare, despite industry headwinds. Lone Pine Capital, for example, took a new position in UnitedHealth Group, buying 1.69 million shares worth about $528 million. Berkshire Hathaway and Scion Asset Management unveiled bets on the insurer as well, while Soros Fund Management boosted its existing stake.
Outside the U.S., the AI boom is reverberating globally. Tencent, a key player in China’s digital economy, reported a 15% year-on-year revenue increase in Q2 2025, fueled by AI gaming, fintech rebound, and cloud infrastructure investments. However, the company faces rising costs, regulatory headwinds, and content challenges, which could weigh on short-term profitability.
For investors and market watchers, the message is clear: hedge funds are placing their faith—and billions of dollars—back into Big Tech and AI, betting that the revolution is just getting started. With tech stocks leading the S&P 500 to a 10% gain so far this year, the stakes have never been higher. Whether these bets will pay off remains to be seen, but for now, Wall Street’s biggest players are all in.
As the dust settles on a volatile first half of 2025, one thing is certain: the race to dominate AI and cloud computing is reshaping the investment landscape, and hedge funds are determined not to be left behind.
