Bank of America survey shows 82% of investors view long global semiconductors as the most crowded trade amid AI-driven optimism.
A record 82% of fund managers identify long global semiconductors as the most crowded trade, according to Bank of America’s latest Global Fund Manager Survey. Cash levels dropped to 3.6%, the lowest since 2022, triggering a sell signal under the bank’s cash rule.
Investor sentiment surged to its highest level since February, driven by optimism over a macroeconomic boom, AI capital expenditure, and a dovish Federal Reserve. Only 2% of respondents anticipate a hard landing, while 54% expect no economic slowdown.
Fund managers increased US equity allocations to their highest overweight since December 2024, with 61% expecting AI hyperscalers to maintain or expand capex this year. The survey polled institutional investors managing hundreds of billions in assets.