Bank of America survey shows semiconductors remain top crowded trade
Summary
In a recent BofA survey conducted from September 4th to 10th, 53% of global fund managers identified "long global semiconductors" as the most crowded trade for the fourth consecutive month, highlighting the intense investor interest in this sector. Despite 33% of respondents expressing concern that companies are overinvesting in semiconductors, the demand remains robust, partially driven by increasing capital spending on AI infrastructure, which could also contribute to future credit stress. The rising significance of semiconductor stocks is further underscored by the emergence of "Short Treasuries" as the second most crowded trade for the first time, signaling shifts in investor sentiment.
Analysis
BofA: Bank of America regularly conducts its Global Fund Manager Survey to capture institutional investor sentiment, positioning, and views on crowded trades. The bank’s September 2026 edition highlighted semiconductors remaining the top consensus position for the fourth straight month. BofA’s research provides a key benchmark for understanding shifts in professional investor behavior. Global Fund Managers: Global fund managers are the institutional investors polled in Bank of America’s monthly survey, representing a broad cross-section of professional asset allocators. In the latest poll, they identified long global semiconductors as the most crowded trade while also flagging concerns about overinvestment in the sector. Their aggregated views serve as a real-time gauge of market consensus and potential reversal risks. Bond Market Dynamics: A disorderly rise in bond yields has surfaced as a leading tail risk among investors amid ongoing semiconductor positioning. Semiconductor Expansion: Major semiconductor equipment makers are actively building out manufacturing and R&D capabilities in emerging markets to support growing chip production needs. AI Infrastructure Concerns: Fund managers continue to view hyperscaler capital spending on AI as both a driver of semiconductor demand and a potential source of future credit stress.
Categories
tech
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