Woofun AI reports that hedge fund exposure to a basket of AI thematic stocks has declined to its lowest point this year. The basket includes AI hardware and semiconductor names such as AMD, Micron, and Nvidia. Goldman Sachs indicates the recent sell-off reflects profit-taking and position adjustments rather than a fundamental deterioration. This deleveraging follows a sharp rally in chip stocks. Despite strong results from TSMC and revised guidance from ASML, semiconductor equities faced selling pressure, with the PHLX Semiconductor Index dropping over 4% on Thursday. Goldman Sachs suggests some funds may be rotating from crowded chip positions to underperforming hyperscalers like Meta, Alphabet, and Oracle.