On July 20, Bank of America released a report stating that as the semiconductor sector has rebounded significantly this year, funds are rebalancing their portfolios through profit-taking, resulting in large-scale capital outflows from the semiconductor and software sectors. Meanwhile, to reduce excessive reliance on AI themes, capital is shifting towards traditional cyclical sectors such as energy and materials. Global active funds have significantly reduced their holdings in the semiconductor and software sectors: year-to-date, global active long-term funds have sold $77.4 billion worth of semiconductor stocks to rebalance positions after the substantial rebound in the semiconductor sector. At the same time, due to weakening profit momentum, funds have also sold $58.1 billion worth of software stocks. Capital is flowing into the energy and materials sectors to diversify AI theme risks: as a hedge against excessive concentration on AI themes, funds have purchased $36.8 billion in energy stocks and $25.8 billion in materials stocks this year. In June alone, global funds net bought $13.2 billion in energy and $4.1 billion in materials while selling $11.9 billion in technology hardware and $8.1 billion in diversified financials.