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Bank of America Survey: Investor Allocation to Tech Stocks Reaches Highest Level Since 2020, Semiconductor Stocks Become Most Crowded Trade

A survey by Bank of America reveals that global investors are chasing the stock market rally driven by artificial intelligence, with allocations to tech stocks reaching the highest level since the market rebound following the COVID-19 pandemic. The survey shows that the proportion of fund managers overweight in tech stocks rose from 30% last month to 37%, the highest since August 2020. About 45% of respondents believe an AI bubble will emerge by 2027, while 42% do not. Artificial intelligence has been the hottest trading theme in the stock market, propelling the S&P 500 index to nearly a 120% increase during a four-year bull market. However, as investors question whether AI investment returns can justify massive tech spending, some enthusiasm around AI is waning. Respondents in Bank of America's October survey indicated that global semiconductor stocks are currently the most crowded trade in the market. (Bloomberg)

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