Why Investors Are Reducing AI Exposure

Goldman's Privorotsky says the AI-concentrated trade is unwinding, with hyperscaler capex monetization and power-supply limits now the market's key risk.

• AI concentration unwinding: Rich Privorotsky says the summer's "long AI, short everything else" trade is reversing as investors de-risk into Q3 earnings, with the biggest-ever tech selling in Goldman's prime book last week.
• Three market worries: Rising cost of capital (CCC spreads, European sovereigns, neocloud financing), power-supply bottlenecks (a 20-50GW shortfall next year), and contradictory fears over both under- and over-delivery of compute.

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