Institutional investors pare stakes in top US tech stocks in latest 13F filings

Institutional investors reduced exposure to some of the most prominent U.S. technology stocks in the latest round of quarterly 13F filings, reflecting a cautious stance ahead of a packed earnings calendar.

Fidelity Investments, Vanguard Group and State Street Global Advisors were among the asset managers that scaled back positions in companies such as Nvidia, Microsoft and Alphabet during the first quarter, according to regulatory disclosures filed late Friday. The adjustments came despite the S&P 500 Information Technology sector gaining 11% over the same period, underscoring a strategic shift rather than a broad retreat from the segment.

Nvidia’s stake was trimmed by Fidelity and Vanguard, with the former reducing its holdings by approximately 3% and the latter by roughly 1%. Microsoft saw a 2% decrease in Fidelity’s portfolio, while Alphabet’s weight in Vanguard’s funds declined by about 1.5%. The moves followed a first quarter in which the tech-heavy Nasdaq Composite surged 8.5%, outpacing broader equity benchmarks.

Analysts attributed the selective reductions to valuation concerns and the need to rebalance portfolios after strong gains. "Institutions are taking profits in high-flyers to lock in gains and manage risk, even as they remain constructive on the long-term outlook for AI and cloud computing," said a portfolio manager at a mid-sized asset manager, speaking on condition of anonymity.

The broader trend extended beyond the largest tech names. State Street trimmed its Apple position by 1.2% and trimmed Meta Platforms by 0.8%, while BlackRock slightly reduced its exposure to Amazon. The adjustments were not uniform across all managers, with some funds increasing stakes in select tech firms, including smaller-cap names tied to semiconductor and software themes.

The 13F filings, which cover the period ending March 31, provide a snapshot of institutional sentiment but do not necessarily signal a long-term shift in strategy. The tech sector remains a top overweight in many institutional portfolios, supported by robust earnings growth and strong demand for AI-driven solutions.

Investors will now focus on upcoming earnings reports from major tech companies, with Nvidia and Microsoft among those scheduled to report in late April and early May. The results are expected to provide further clarity on whether the sector’s momentum can be sustained amid rising competition and regulatory scrutiny.