Key Takeaways
- • Tiger Global reduced its Microsoft stake by 15.8% to 5.47 million shares (valued at $2.6 billion) in Q4 2025, while trimming Amazon by 9.35% to 10 million shares ($2.3 billion) and cutting Nvidia holdings, signaling portfolio rebalancing among "Magnificent 7" stocks.
- • Adage Capital implemented smaller reductions of 1–3% across Microsoft, Alphabet, Amazon, and Nvidia, but simultaneously increased Oracle holdings by approximately 19% to 1.87 million shares ($365 million), suggesting a tactical rotation within the AI investment theme.
- • Both hedge funds' moves reflect institutional concern over stretched valuations in mega-cap AI stocks and uncertainty regarding returns on massive AI infrastructure spending, despite these positions remaining among their largest holdings.
- • SoftBank Group liquidated its entire Nvidia stake in October 2025 to fund additional OpenAI investments, illustrating how major investors are reallocating capital across the AI ecosystem.
Summary
Tiger Global Management and Adage Capital Partners trimmed significant positions in leading artificial intelligence companies during the fourth quarter of 2025, according to U.S. Securities and Exchange Commission Form 13-F filings released February 17. The moves signal growing caution among sophisticated investors regarding valuations in the "Magnificent 7" cohort of AI-driven mega-cap stocks—Nvidia, Amazon, Microsoft, Meta, and Alphabet—despite their continued prominence in major portfolios.
Tiger Global's reductions were most pronounced in Microsoft, cutting its stake by 1.03 million shares from 6.5 million shares as of September 30, 2025, to 5.47 million shares. This 15.8% reduction left the hedge fund with a position valued at $2.6 billion. Tiger also reduced its Amazon holding by 9.35% to 10 million shares worth $2.3 billion and trimmed its Nvidia position, valued at $2.1 billion. Despite these cuts, all three stocks remained among Tiger Global's largest holdings, indicating the fund maintained substantial exposure to AI beneficiaries while modestly de-risking.
Adage Capital's adjustments were more measured, with reductions of 1 to 3 percent across Microsoft, Alphabet, Amazon, and Nvidia. However, Adage simultaneously increased its Oracle position by approximately 19% to 1.87 million shares valued at $365 million, suggesting a deliberate rotation rather than broad-based retreat from AI exposure. This tactical shift underscores the complexity of the AI investment landscape, where investors distinguish between different exposure levels and valuations within the sector.
The reductions reflect institutional concern over whether enormous capital expenditures on AI infrastructure will generate sufficient returns to justify current valuations. These concerns have mounted following substantial run-ups in "Magnificent 7" shares over recent years. Separately, SoftBank Group reported liquidating its entire Nvidia stake in October 2025 to fund additional investments in OpenAI, demonstrating how major capital allocators are repositioning across AI-related opportunities. Neither Tiger Global nor Adage Capital responded to requests for comment on their strategic rationale.
Tiger Global's reductions were most pronounced in Microsoft, cutting its stake by 1.03 million shares from 6.5 million shares as of September 30, 2025, to 5.47 million shares. This 15.8% reduction left the hedge fund with a position valued at $2.6 billion. Tiger also reduced its Amazon holding by 9.35% to 10 million shares worth $2.3 billion and trimmed its Nvidia position, valued at $2.1 billion. Despite these cuts, all three stocks remained among Tiger Global's largest holdings, indicating the fund maintained substantial exposure to AI beneficiaries while modestly de-risking.
Adage Capital's adjustments were more measured, with reductions of 1 to 3 percent across Microsoft, Alphabet, Amazon, and Nvidia. However, Adage simultaneously increased its Oracle position by approximately 19% to 1.87 million shares valued at $365 million, suggesting a deliberate rotation rather than broad-based retreat from AI exposure. This tactical shift underscores the complexity of the AI investment landscape, where investors distinguish between different exposure levels and valuations within the sector.
The reductions reflect institutional concern over whether enormous capital expenditures on AI infrastructure will generate sufficient returns to justify current valuations. These concerns have mounted following substantial run-ups in "Magnificent 7" shares over recent years. Separately, SoftBank Group reported liquidating its entire Nvidia stake in October 2025 to fund additional investments in OpenAI, demonstrating how major capital allocators are repositioning across AI-related opportunities. Neither Tiger Global nor Adage Capital responded to requests for comment on their strategic rationale.
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