US equity mutual funds record largest underweight in AI equities

There is a gap opening up in US equity markets, and it is costing mutual fund managers dearly. Large-cap active mutual funds are now sitting roughly 107 basis points underweight in AI-related equities relative to their benchmarks, according to a Goldman Sachs analysis covering 504 actively managed mutual funds with a combined equity asset value of approximately $4.6 trillion. To put that in plain terms: fund managers have been buying AI stocks, just not fast enough to keep up with how much those stocks have grown inside the benchmarks they are trying to beat. Nvidia is the headline problem Nvidia sits at the center of this story. The chipmaker is the single largest underweight among all AI equities tracked by Goldman, clocking in at around 100 basis points of underweighting on its own. Other names are adding to the drag. AMD sits at approximately 60 basis points underweight, Alphabet at around 70 basis points, and Microsoft at roughly 50 basis points. The pattern is consistent: large-cap mutual funds have been gradual accumulators of AI infrastructure and hyperscaler stocks, but gradual has not been fast enough. There is one exception worth flagging. Micron Technology shows up as a...