Hedge Funds Reenter AI Investment Ecosystem

Hedge funds including Point72, Bridgewater and D. E. Shaw are rotating back into AI-linked equities and infrastructure throughout 2025 and early 2026, driven by renewed corporate capital expenditures and surging demand for high-performance chips and cloud capacity. Firms are trading across the AI capital cycle—semiconductors, cloud, enterprise software and energy—while using AI and alternative data, raising crowded-trade and valuation risks.