On August 25, BofA data showed that active long-only funds sharply reduced holdings in global semiconductor stocks last month, selling about $44.4 billion and signaling a pullback from crowded AI trades. According to ChainCatcher, the selling shifted capital toward telecom, energy, materials, and grid modernization, suggesting a broader reallocation within the AI theme.
The data helps explain some of the recent pressure on the market. Ahead of Nvidia's earnings report, investors still expect strong AI demand, but chip stocks had already risen sharply and positioning was crowded. BofA said semiconductors are likely to face the earliest selling pressure if long-term yields rise, AI revenue expectations cool, or questions emerge over cloud providers' capital expenditure returns.
BofA also said the themes most heavily sold by funds over the past year included AI computing and quantum computing, indicating that capital has not fully left AI but is reducing exposure to the most crowded areas. The bank expects chip stocks to remain sensitive in the short term to Nvidia results, cloud provider guidance, and interest-rate moves, while medium-term flows may favor power, equipment, networking, and storage names tied to AI infrastructure spending.
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The data helps explain some of the recent pressure on the market. Ahead of Nvidia's earnings report, investors still expect strong AI demand, but chip stocks had already risen sharply and positioning was crowded. BofA said semiconductors are likely to face the earliest selling pressure if long-term yields rise, AI revenue expectations cool, or questions emerge over cloud providers' capital expenditure returns.
BofA also said the themes most heavily sold by funds over the past year included AI computing and quantum computing, indicating that capital has not fully left AI but is reducing exposure to the most crowded areas. The bank expects chip stocks to remain sensitive in the short term to Nvidia results, cloud provider guidance, and interest-rate moves, while medium-term flows may favor power, equipment, networking, and storage names tied to AI infrastructure spending.
#newscrypto #criptonews #NewsAboutCrypto #Binance #Crypto_Jobs🎯