Bank of America: Active long-term funds sold off $44.4 billion in semiconductor stocks last month
On August 25, Bank of America data showed that actively managed long-term funds significantly reduced their holdings in global semiconductor stocks last month, selling approximately $44.4 billion, indicating that institutional funds are withdrawing from the most crowded AI trades. The flow of funds has shifted towards telecommunications, energy, materials, and grid modernization, reflecting a more noticeable redistribution within the AI theme.This set of data explains part of the recent market pressure. Ahead of NVIDIA's earnings report, the market still holds high expectations for AI demand, but semiconductor stocks have previously risen too much, and positions have become more concentrated. Once long-term interest rates rise, AI revenue expectations cool, or the return on capital expenditures for cloud vendors is questioned, the semiconductor sector will be the first to bear the pressure of position reduction. Bank of America also pointed out that the themes that funds sold the most in the past year include AI computing and quantum computing, indicating that funds have not completely left AI but are reducing exposure to highly crowded sectors.Bank of America expects that semiconductor stocks will continue to be influenced in the short term by NVIDIA's performance, cloud vendor guidance, and interest rate trends; in the medium term, funds may be more willing to allocate to sub-sectors such as electricity, equipment, networks, and storage that can share in AI infrastructure spending.