Global investors are chasing an AI-driven stock market rally, pushing their exposure to technology shares to the highest level since the post-COVID rebound six years ago, according to a Bank of America survey.
The survey showed that the share of fund managers overweight technology rose to 37% from 30% last month, the highest since August 2020.
About 45% of respondents believe an AI bubble will emerge in 2027, while 42% hold the opposite view.
Artificial intelligence is the hottest trading theme in the stock market, having driven the S&P 500 up nearly 120% over a four-year bull market.
However, some enthusiasm in AI-related markets is cooling, with investors questioning whether the massive capital expenditure in the technology sector can deliver matching returns.
Respondents to the October BofA survey said global semiconductor stocks are the most crowded trade in the current market.
On Tuesday, shares of South Korean memory chip giants Samsung Electronics and SK Hynix fell sharply, dragging Asian stock indices to their lowest level since August.
Futures contracts tracking the tech-heavy Nasdaq 100 index fell 0.6%.
Meanwhile, investor pessimism toward bonds dropped to its lowest level since May 2025.
About 37% of respondents said they would shift funds from stocks to bonds if the 10-year U.S. Treasury yield rose to 6%, while about 19% said they had already begun adjusting their asset allocation.
The 10-year U.S. Treasury yield stood at 5.19% in early trading on Tuesday.
The survey was conducted from October 2 to October 8, with 161 respondents participating, managing a combined total of $453 billion in assets.
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