Tiger Global Management and Adage Capital Partners were among investors that trimmed their holdings of some AI heavyweights including Nvidia (NVDA-Q) and Amazon (AMZN-Q) during the fourth quarter of 2025, according to U.S. Securities and Exchange Commission disclosures.
The quarterly 13-F filings provide insight into how some major investors have been reacting to growing worries that valuations of the “Magnificent 7” AI giants — a cohort that also includes Meta and Microsoft — have become stretched and that their massive spending on AI technology will fail to generate sufficient returns.
Tiger Global trimmed its stake in Microsoft (MSFT-Q) to 5.47 million shares during the fourth quarter from 6.5 million shares as of September 30, 2025. That still leaves the hedge fund as one of Microsoft’s biggest investors, with a stake worth $2.6 billion.
Tiger also made smaller cuts of 9.35% to its Amazon stake, which as of the end of 2025 stood at 10 million shares valued at $2.3 billion, and trimmed its Nvidia position, now valued at $2.1 billion.
Other hedge funds disclosed similar reductions after a huge run-up in “Magnificent 7” shares in recent years helped boost returns.
For many, those stocks still remain their largest holdings. Adage Capital disclosed smaller cuts of 1% to 3% in companies that included Microsoft, Alphabet (GOOGL-Q) and Amazon, as well as Nvidia. But Adage also boosted its stake in Oracle, another company with exposure to the AI theme, by about 19% to 1.87 million shares, valued at about $365 million.
Neither Tiger nor Adage could be reached immediately for comment.
Separately, SoftBank Group Corp reported it had dissolved its stake in Nvidia, an October transaction the company first disclosed in November. SoftBank liquidated the position to help raise funds for further investments in ChatGPT creator OpenAI.
Nvidia’s stock price has fallen about 7% since November 11, when SoftBank disclosed the sale of its stake. Nvidia is set to report its quarterly results on February 25, and analysts on average expect a 67% jump in revenue, according to LSEG data.
D.E. Shaw, a hedge fund that employs quantitative trading and investment screens, also trimmed its stakes in Nvidia, Micron and Meta (META-Q), although it added to its holdings of Amazon and chipmaker AMD during the fourth quarter, the firm disclosed. D.E. Shaw could not immediately be reached for comment.
Some investors backed away from other smaller tech stocks.
Apis Capital cut its stakes in Seagate Technology Holdings , Western Digital and SanDisk, all of which have seen their shares surge in recent months on strong AI-related demand for their data storage technology. Shares of SanDisk have gained 153% so far in 2026, while Western Digital and Seagate are both up over 50%, year to date.
Apis could not be reached for comment.
The 13-F filings compare investor holdings as of December 31 with those as of September 30. They must be filed within 45 days of the end of each fiscal quarter by institutional investors that include sovereign wealth funds, pension funds, college endowments, hedge funds and wealth managers. They capture institutional investor positions as of that date but do not reflect position changes that may have taken place so far in the first quarter.