Citi Gives Up on Hyperscalers as Rotation Sinks Its Bet

Citi has given up on one of its market bets. The bank's call on hyperscalers, the large cloud and computing companies that sit at the center of the sector, has not worked out, and the firm is walking away from it.

The reversal came as investors rotated sharply out of growth-oriented names. Hyperscalers and other growth plays underperformed during the shift, leaving positions built around them trailing the wider market.

For investors, the episode is a reminder that a well-reasoned thesis can unravel quickly when market leadership changes hands. Rotations like this tend to hit crowded trades hardest, and a view that depends on a handful of large names keeping their momentum carries concentration risk.