Tesla, Apple, Amazon Among Hedge Fund Favorites, SPY Emerges As Top ETF Buy

Hedge funds boosted their holdings in leading technology firms substantially in the second quarter of 2025, with Apple Inc AAPL, Amazon.com Inc AMZN, Nvidia Corp NVDA, Microsoft Corp MSFT, Meta Platforms Inc META, Alphabet Inc GOOGL, Tesla Inc TSLA, and Broadcom Inc AVGO being among the top bought stocks, per data compiled by HedgeFollow from 13F filings.

SPY was bought in billions in Q2. Track its prices live.

Since these eight firms represent most of the S&P 500’s market cap and prominently sit in its top holdings, the SPDR S&P 500 ETF Trust SPY was the most purchased ETF by hedge funds in Q2 2025.

Proficio Capital Partners bought $7.49 billion of SPY in the second quarter, while Farallon Capital Management scooped up $3.24 billion worth of the fund. Goldman Sachs Group took away $1.21 billion worth of SPY.

Hedge Fund Positioning

The trend reflects institutional investors’ growing confidence in U.S. large-cap tech stocks, particularly those poised to benefit from secular trends in artificial intelligence and cloud computing. These names were mainly purchased by several top funds such as Bridgewater Associates, Tiger Global, Discovery Capital, Coatue Management, and Lone Pine Capital.

Broadcom’s robust earnings beat and forecast for AI infrastructure demand-driven also raised its profile as a top hedge fund portfolio addition. In the meantime, steady demand for Nvidia, Microsoft, and Alphabet demonstrated investors’ faith in the AI business’s long-term growth outlook.

Also Read: 6 Undervalued Semiconductor And Software Stocks Flashing Strong Value Signals

Broader Market Implications

The focus of hedge fund buying in these megacap tech stocks underscores their leading influence on equity market behavior. Together, the “Magnificent Seven” (excluding Broadcom) have been responsible for a considerable portion of the S&P 500 returns in 2025. By proxy, ETFs like SPY, which track the index makeup, have been a beneficiary of increased hedge fund inflows.

Strategists observe that while the intense flow into SPY indicates institutional preference for diversified exposure, the underlying driver is still concentrated interest in a small number of mega-cap tech companies.

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