According to the latest 13F filing with the U.S. Securities and Exchange Commission (SEC), Citigroup Inc. reported its Q3 2025 U.S. equity holdings as of September 30. The financial giant's total portfolio value rose approximately 10% quarter-over-quarter to $224 billion, up from $204 billion in Q2.

During the quarter, Citigroup added 826 new stocks, increased positions in 1,833 stocks, reduced holdings in 3,028 stocks, and completely exited 399 positions. The top 10 holdings accounted for 19.48% of its total portfolio value, reflecting concentrated exposure.

Notably, Citigroup aggressively cut positions in four major U.S. tech giants—NVIDIA (NVDA.US), Microsoft (MSFT.US), Apple (AAPL.US), and Amazon (AMZN.US)—all of which (except Apple) have significantly benefited from the unprecedented AI investment boom since 2023. Simultaneously, the bank increased bearish bets on small caps via Russell 2000 Index ETF puts (IWM.US, PUT) and added NVIDIA and Tesla (TSLA.US) put options.

Citigroup's large-scale reduction of AI-focused tech holdings aligns with the recent "AI bubble" narrative that triggered a global tech stock pullback. The move underscores growing skepticism among Citigroup's top traders about the sustainability of the two-year AI frenzy, particularly as tech giants continue pouring billions into AI infrastructure while monetization pathways remain unclear and valuations stretch.

As global markets retreat from record highs amid AI bubble concerns, investors now have compelling reasons to take profits in overvalued AI-linked stocks like NVIDIA, Micron, SK Hynix, Alphabet, Microsoft, and Advantest. However, Citigroup made a contrarian bet by slightly increasing its stake in Broadcom (AVGO.US), an AI ASIC leader, signaling confidence in Broadcom's growth potential to erode NVIDIA's GPU market share.

Key Holdings Breakdown: 1. NVIDIA (NVDA.US) remained Citigroup's top holding at 33.39 million shares ($6.2 billion, 2.78% of portfolio), but positions were slashed 28.22% QoQ. 2. Russell 2000 ETF puts (IWM.US, PUT) ranked second at 23.99 million shares ($5.8 billion, 2.59%), up 12.26%. 3. Microsoft (MSFT.US) fell to third place with 9.56 million shares ($5 billion, 2.21%), down 19.55%. 4. Tesla puts (TSLA.US, PUT) rose to fourth at 10.43 million shares ($4.6 billion, 2.07%), up 6.84%. 5. Tesla stock (TSLA.US) ranked fifth with 9.58 million shares ($4.3 billion, 1.90%), up 2.37%.

Other notable moves included: - Apple and Amazon positions were cut by 33% and 30%, respectively. - Broadcom became Citigroup's eighth-largest holding after a modest increase. - Nasdaq 100 ETF puts (QQQ.US, PUT) surged 81%, becoming the 11th-largest position. - Alphabet (GOOGL.US) and Meta (META.US) holdings were reduced, mirroring the broader tech pullback strategy.

Top Q3 Buys: 1. High-yield corporate bond ETF puts (HYG.US, PUT) 2. NVIDIA puts (NVDA.US, PUT) 3. Nasdaq 100 ETF puts (QQQ.US, PUT) 4. Applovin calls (APP.US, CALL) 5. Tesla puts (TSLA.US, PUT)

Top Q3 Sells: 1. NVIDIA (NVDA.US) 2. Meta (META.US) 3. Amazon (AMZN.US) 4. Microsoft (MSFT.US) 5. Apple (AAPL.US)

These moves demonstrate Citigroup's proactive hedging against an AI-driven market correction, particularly through increased short positions on the Nasdaq and NVIDIA. The bank's timely profit-taking at tech stock peaks in Q3 proved prescient as AI bubble fears materialized.