The Smartest Way to Play the AI Rebound

Leopold Aschenbrenner’s collapse didn’t end the AI trade.

It reset it.

After Citadel stepped in to buy the Situational Awareness asset base for pennies on the dollar, a new fact came across my desk.

Goldman Sachs prime brokerage data, covering hedge fund flows, showed a net reduction in hedging activity.

Specifically,

These funds bought billions worth of software stocks like Adobe, Workday, Microsoft (all part of our portfolio.)

That wasn’t the important tell.

What this showed was a complete shift to the way AI names were trading before Leopold’s fund collapsed.

You can see it in the SMH ETF rate of change above, now well below the standard daily movements for the leveraged period.

In other words,

Hedge funds and other traders can buy exposure into AI names with a lot less capital, since they don’t need to be as careful about sizing or hedging anymore.

So, I believe the recent rebound won’t be short-lived but rather a new wave of upside waiting to come about.

After hours of digging through the most recent data, I have come across three names I would like to start buying in this AI rebound

A market-neutral structure designed to profit whether AI spending accelerates.

Or whether the capex cycle begins to fade.

That’s why,

This is the smartest way to play the AI rebound.