Bank of America Survey: AI Boom Expected to Continue, FOMO Sentiment Remains a Driving Force

Odaily According to a survey by Bank of America, the rally in artificial intelligence stocks appears poised to continue. Most investors believe FOMO sentiment is still driving this trading theme. In the bank's monthly survey, approximately 56% of fund managers chose the term "boom" to describe the current phase of the AI cycle. This typically refers to a period where market momentum continues to build, attracting more investors who fear missing out on the rally. Only 21% of respondents believe the sector has entered a "frenzy" phase, where stock valuations are pushed to extreme levels; another 9% described AI as being in a "profit-taking" stage.

The survey covered investors managing a total of $465 billion in assets and was conducted from June 5 to June 11, just ahead of SpaceX's listing. However, the survey also revealed some investor concerns about the tech sector. Four out of five respondents believe that buying and holding global semiconductor stocks is currently the most crowded trade in the market, the highest proportion recorded in the survey's history. Overall, investors slightly reduced their overweight allocation to the technology sector from 33% to 26%, and lowered their global stock overweight allocation from 50% to 38%.