Funds retreat from AI megacaps as SpaceX IPO looms

Hedge funds trimmed exposure to the largest U.S. tech names ahead of SpaceX’s Nasdaq debut, with a JPMorgan note describing heavy late‑week selling in software and renewed demand for semiconductors. The Roundhill Magnificent Seven ETF has fallen more than 2.4% since early June as investors rotate toward chipmakers and other sectors in anticipation of SpaceX’s roughly $75 billion IPO at a $1.75 trillion valuation. SpaceX plans to reserve up to 30% of the offering for retail investors, Fidelity lowered its minimum investment to $2,000, and more IPOs from Anthropic and OpenAI could sustain capital rotations later this year.