---
title: "Blue Whale Fund Dumps Tech Giants Over Artificial Intelligence Spending Concerns"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2024-12-16T06:56:21+00:00"
modified: "2024-12-16T06:56:21+00:00"
date: 2024-12-16
canonical: "https://stockmark.it/blue-whale-fund-dumps-tech-giants-over-artificial-intelligence-spending-concerns/"
category: "Artificial intelligence"
categories: ["Artificial intelligence", "Investment", "Tech"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/1732987501041_YhDt8goo.jpg?fit=1024%2C576&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Blue Whale Fund Dumps Tech Giants Over Artificial Intelligence Spending Concerns

**Published:** December 16, 2024
**Author:** Stockmark.IT Website
**Categories:** Artificial intelligence, Investment, Tech
**Featured image:** ![Abstract digital circuit board design with glowing orange and blue lines converging on a central hub. from Stockmark.it](https://i0.wp.com/stockmark.it/wp-content/uploads/1732987501041_YhDt8goo.jpg?fit=1024%2C576&quality=89&ssl=1)

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The investment fund Blue Whale Growth, supported by billionaire Peter Hargreaves, has significantly reduced its holdings in the ‘Magnificent Seven’ US technology companies due to mounting concerns about their substantial artificial intelligence expenditure.

Fund manager Stephen Yiu has made bold moves, notably selling Microsoft shares aggressively to secure profits, resulting in the tech giant’s removal from the fund’s top 10 holdings in the third quarter – a first since the fund’s 2017 inception. Yiu emphasised that Microsoft’s return on invested capital is likely to decline, given its substantial AI infrastructure investments.

The ‘Magnificent Seven’ – Microsoft, Nvidia, Apple, Alphabet, Meta, Amazon, and Tesla – have seen their shares soar in recent years, now representing approximately one-third of the S&P 500’s market capitalisation. However, prominent investors, including Warren Buffett and Terry Smith, have recently scaled back their positions in these tech behemoths.

Yiu maintains a positive stance solely on Nvidia among the seven, holding nearly 10% of his £1.3 billion fund in the chipmaker. The fund’s exposure to the remaining six companies has been reduced to merely 5% of the portfolio, significantly below the MSCI World’s 20% allocation.

The fund’s performance remains strong, delivering a 24% return through November 2023, outperforming the sector average of 15%. Hargreaves’ family maintains a substantial £200 million holding in the fund, demonstrating continued confidence despite the strategic shift.

Wall Street’s growing apprehension about returns on Big Tech’s capital spending, projected to exceed £200 billion this year, appears to validate Yiu’s cautious approach. His decision to reduce exposure to these tech giants signals a broader market concern about the sustainability of AI-driven growth strategies.

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**Original URL:** https://stockmark.it/blue-whale-fund-dumps-tech-giants-over-artificial-intelligence-spending-concerns/
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