Wedgewood Partners increased exposure to hyperscalers and semiconductors, citing AI adoption and earnings potential in Q2 2026.
Wedgewood Partners reported a 9.4% net return in Q2 2026, underperforming the S&P 500’s 15.2% gain. The firm shifted capital toward hyperscalers and semiconductor stocks, emphasizing their role in AI infrastructure and long-term growth potential.
The S&P 500’s semiconductor weighting has expanded, benefiting from hyperscalers’ spending. However, Wedgewood cautioned about cyclical risks and volatility in the sector, noting its fund’s 25% return over 15 months lagged the S&P 500 Momentum ETF’s 90% gain.
Microsoft, a top holding, was highlighted for its dominance in cloud infrastructure and generative AI, reinforcing the firm’s bullish tech outlook.