BofA fund manager survey: Long global semiconductors becomes one of the most crowded trades in history

BlockBeats news, on July 17, Bank of America's July global fund manager survey shows that investors have conflicting attitudes toward the AI semiconductor trade: most have not bet on the end of the cycle, but more and more believe the trade has become excessively crowded.

The survey shows that 82% of the fund managers surveyed consider "going long global semiconductors" to be the most crowded trade worldwide, setting a new record. Meanwhile, the allocation to tech stocks dropped from a net 26% overweight to a net 18% overweight, indicating investors are reducing some long positions, but have not truly switched to shorting. The survey also reveals that 61% of investors do not expect hyperscalers to announce capital expenditure cuts this year.

The BofA survey also pointed out that the AI bubble has become one of the largest tail risks, with the proportion choosing it rising from 28% in June to 45% in July. However, only some investors believe AI stocks are already in a bubble; most still view it as a "boom phase," meaning momentum continues to attract capital inflows, but position and valuation risks are rising.

The survey was conducted from July 2 to July 9, covering 210 fund managers, with a combined asset management of approximately $555 billion.