According to the Zhītōng Finance APP, Bank of America released a report stating that recent data shows that although the semiconductor industry has performed strongly so far this year, the relative weight of this industry in actively managed funds continues to decline.
Bank of America stated that the relative weight of the semiconductor industry has decreased by 9% to 0.99 times, continuing to decline from the level of 1.16 times in June 2023, falling below the peak of 1.36 times in March 2017.
Despite the decrease in relative weight, NVIDIA (NVDA.US) still has the widest ownership, with 68% of fund managers holding the stock. This proportion remains at a historical high and has increased by 10 basis points, indicating that fund managers are still including this semiconductor giant in their portfolios.
The companies with the largest increase in exposure quarter-on-quarter are Broadcom (AVGO.US), Applied Materials (AMAT.US), Micron (MU.US), Cadence Design Systems (CDNS.US), and Qualcomm (QCOM.US), while ON Semiconductor (ON.US), Analog Devices (ADI.US), and Intel (INTC.US) experienced the largest declines.
The companies with the largest increase in depth and over-allocation quarter-on-quarter are Synopsys (SNPS.US), Teradyne (TER.US), Cadence Design Systems, and Texas Instruments (TXN.US), while Qorvo (QRVO.US), Microchip Technology (MCHP.US), ON Semiconductor, and Intel experienced the largest decreases in weight.
The stocks most over-allocated by long-only investors include Microchip Technology, ON Semiconductor, Texas Instruments, KLA Corporation (KLAC.US), while the stocks most over-allocated by hedge funds include Teradyne, Qualcomm, Lam Research Corporation (LRCX.US), Micron, Cadence Design Systems, and Qorvo.
NVIDIA remains the most widely held semiconductor company in the S&amp;P 500 Index, followed by Broadcom (45.8%), Applied Materials (39.5%), AMD (39.3%), Lam Research Corporation (32.8%), and Texas Instruments (28.5%). These six companies all saw quarter-on-quarter growth, although the holdings of AMD and Texas Instruments decreased year-on-year.
The most over-allocated semiconductor stocks in the S&amp;P 500 Index portfolios include Synopsys (1.77 times relative to the index weight), KLA Corporation (1.71 times), Qualcomm (1.68 times), Micron (1.35 times), and Cadence Design Systems (1.32 times). The least over-allocated stocks include Qualcomm, Qorvo, Skyworks Solutions (SWKS.US), and Teradyne.
It is understood that Bank of America uses its stock strategy data to observe breadth (the percentage of sample stock fund managers holding) and depth (the weight of the stock in the portfolio relative to its weight in the S&amp;P 500 Index)

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The semiconductor industry's relative weight in actively managed funds continues to decline, but NVIDIA remains the most favored stock. Broadcom, Applied Materials, Micron, Kinsus Interconnect Technology, and Qualcomm saw the largest quarter-on-quarter growth, while ON Semiconductor, AMD, and Intel experienced the biggest declines. NXP Semiconductors, Teradyne, Kinsus Interconnect Technology, and Texas Instruments had the highest depth and over-allocation quarter-on-quarter growth, while Qorvo, Microchip Technology, ON Semiconductor, and Intel had the largest weight reductions. NVIDIA remains the most widely held semiconductor company, followed by Broadcom, Applied Materials, AMD, Qualcomm, and Texas Instruments. All six companies achieved quarter-on-quarter growth

- According to a report by Bank of America, despite the strong performance of the semiconductor industry this year, the relative weight of this sector in actively managed funds continues to decline, dropping by 9% to 0.99 times compared to the previous period.
- Nvidia (NVDA.US) remains the most widely held stock with 68% of fund managers owning it, indicating sustained interest in this semiconductor giant despite the sector's decreasing relative weight.
- Bank of America's stock strategy data reveals insights into the breadth and depth of fund managers' holdings in semiconductor stocks compared to the S&P 500 index weights.

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Bank of America Report: Active funds cool on semiconductor stocks, NVIDIA still favored