Bridgewater Associates, the Westport, Connecticut-based macro fund founded by Ray Dalio, made sweeping cuts to several of its largest technology positions during the second quarter of 2026 while simultaneously adding to broad-market index funds, according to its latest 13F filing with the Securities and Exchange Commission. The filing shows Nvidia shares reduced by 17.6%, Advanced Micro Devices cut by 58.3%, Microsoft trimmed by 34.4%, and Micron Technology slashed by 92.1% from the prior quarter's holdings.
The move first stood out in data tracked on Trade Filings, a Madison Labs research site, which compiles quarter-over-quarter position changes disclosed in SEC EDGAR filings. Bridgewater's reportable U.S. long book stood at $24.38 billion as of the quarter's end, a figure that reflects only the fund's disclosed equity positions and excludes cash, bonds, shorts and non-U.S. holdings.
Taken together, the filing shows a portfolio-wide retreat from semiconductor and AI-adjacent names that extended well beyond the four headline tickers. Broadcom fell 28.2% in share count, Applied Materials dropped 48.0%, KLA declined 69.8%, Marvell fell 90.7%, Teradyne dropped 70.9%, and Credo Technology Group was cut 82.6%. Arista Networks, a networking equipment supplier tied closely to AI data center buildouts, saw its position reduced by 80.9%. According to the sector breakdown in the filing, Bridgewater's technology allocation fell by 7.7 percentage points quarter over quarter, the largest sector shift in the portfolio, while financial services rose 6.2 points and energy gained 3.9 points.
At the same time, the fund expanded its holdings in plain-vanilla index products. The State Street SPDR S&P 500 ETF Trust position grew 21.9% in shares to $3.97 billion, making it Bridgewater's single largest disclosed holding. The iShares Core S&P 500 ETF rose 12.1% to $2.25 billion, and the Vanguard S&P 500 ETF surged 189.0% in share count to $314.82 million. The fund also added to an emerging-markets ETF sleeve and an iShares MSCI South Korea ETF position, though the latter was trimmed 21.6%.
For investors tracking institutional positioning, a 13F filing offers a delayed, backward-looking snapshot rather than a live signal: the SEC requires disclosure within 45 days of quarter-end, meaning the reported moves reflect decisions already made weeks earlier. The filing also does not disclose derivatives, short positions, or non-U.S. securities, so it cannot fully capture Bridgewater's net exposure to any single theme. Still, the magnitude of the reductions across a cluster of semiconductor and software names, paired with fresh buying of broad index funds, is one reading of a fund reducing single-stock concentration risk tied to the artificial intelligence trade in favor of more diversified, market-wide exposure.
Bridgewater has long described itself as a macro-driven manager whose strategy is built around diversification across asset classes and geographies rather than concentrated stock bets, a positioning that predates the current AI investment cycle. The firm's reportable equity book represents only a portion of its broader strategy, which also includes global bonds, currencies and commodities not captured in the 13F.
The portfolio shifts land against a market backdrop in which AI-linked stocks have shown volatility tied to policy and earnings catalysts. Advanced Micro Devices shares were up 4.9% in recent trading, while broader technology sentiment has been described by Yahoo Finance as under pressure following comments from President Trump and Treasury Secretary Bessent, with Nvidia shares reportedly selling off ahead of its earnings report. Elsewhere in markets, Bitcoin traded near $78,742, down 0.7% over 24 hours, while Ethereum sat near $2,467.66, down 0.5%. Among individual equities, Merck & Co. rose 3.8% and Netflix gained 2.8%, while Intuit and Palo Alto Networks each fell more than 3%.
Investors and analysts tracking institutional flows will likely watch upcoming 13F filings from other large asset managers to see whether Bridgewater's reduction in AI-adjacent concentration reflects an isolated repositioning or a broader trend among macro and multi-strategy funds. Nvidia's upcoming earnings report, cited by Yahoo Finance as a near-term catalyst for technology-sector sentiment, may also offer a test of whether the recent selling pressure in chip stocks persists or reverses. As with all 13F disclosures, subsequent quarterly filings will show whether Bridgewater continues to rotate away from concentrated technology exposure or adjusts its approach as market conditions evolve.