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Ripple Effect

Hedge Funds Are All-In on Chip Stocks

Loading ...Addison Wiggin

October 27, 2025 • 1 minute, 8 second read

semiconductor
Hedge Funds Are All-In on Chip Stocks

Move over index funds and ETFs, hedge funds have now gone all-in on semiconductor stocks:

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Hedge funds now have their highest exposure to semiconductor stocks – ever. (Source: Barchart)

Typically, “hedge funds” are used for portfolio insurance against prevailing trends. Right now, they’re all in on AI chipmakers.

This isn’t a sign of a top all by itself, but we could absolutely add it to our list of features in the Anatomy of a Stock Market Bubble, we detailed last Thursday on Grey Swan Live!

~ Addison

P.S. Thanks to everyone who joined us last week. On Thursday, our Anatomy of a Stock Market Bubble on Grey Swan Live!, allowed us to review several charts and indicators, showing the case for a market bubble.

We followed that up with a quarterly review of our asset allocation strategy and our model portfolio for our annual members on Friday. All told, Andrew Packer and I spent over 2 and a half hours covering the macro environment and our specific investment plays.

This week, we’re back in the saddle with one of our Grey Swan contributors, John Robb.

Details to come, but in the meantime, it’s not too late to sign up and become a full-fledged Grey Swan Investment Fraternity member.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

American Autonomy

October 28, 2025 • John Robb

America’s role in the world isn’t that of the world’s policeman (a temporary post-World War II role foisted upon the U.S. due to the Cold War) or as the destination of immigrants (for most of the 20th century, when we saw the most significant increases in individual incomes and quality of life, the U.S. didn’t accept many immigrants). Instead, the role the U.S. has played throughout its existence is as the world’s leader in the production, adoption, and socioeconomic integration of new technologies. We figured out how to do it successfully first, and the world followed.

American Autonomy
The Liquidity Illusion

October 28, 2025 • Addison Wiggin

AMD’s deal with OpenAI is another echo from 1999. OpenAI agreed to buy six gigawatts’ worth of AMD chips — products that don’t yet exist — in exchange for warrants on 160 million AMD shares, about 10% of the company. AMD stock jumped 24% overnight.

And then there’s Oracle’s $300 billion OpenAI contract — five times OpenAI’s annual revenue. Oracle’s stock soared 43% in a day, making Larry Ellison $100 billion richer.

The Liquidity Illusion
Gold’s Relative Strength

October 28, 2025 • Addison Wiggin

Relative strength, or RSI, provides investors with a quick glance as to how much the market likes or hates a given asset. The correction is a welcome event for hard asset investors.

With the metal back under $4,000, our thesis remains untouched.

In fact, the pullback  – while sharp and severe – makes  gold a less expensive insurance policy against geopolitical shocks and other Grey Swan events.

Gold’s Relative Strength
Networked Nationalism Rises

October 27, 2025 • John Robb

On the current trajectory, online and offline tribal warfare, with events that range from assassinations to riots to sabotage, is inevitable. Worse still, with both sides waging moral warfare (good versus evil), there is no middle ground, rendering compromise impossible.

To avoid this, the government could step in to crack down on illegal immigrants, serial criminality, and activist blue cells to slow the ramp in extrajudicial violence from the red tribe. This would reduce the chance we see a rapid escalation in tit for tat violence. However, to do this, it would need to designate many activist groups as terrorist entities and pursue them with the degree of vigor we saw with Islamic radicals after 9/11.

Networked Nationalism Rises