BofA Survey: AI Boom Expected to Continue, FOMO Sentiment Persists

According to a survey by Bank of America, the rally in artificial intelligence stocks appears set to continue. Most investors believe that FOMO sentiment is still driving this trading theme. In the bank's monthly survey, approximately 56% of fund managers chose the word "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 industry has entered a "mania" phase, where stock valuations are pushed to extreme levels; another 9% described AI as being in a "profit-taking" phase.

The survey, which covered investors managing a total of $465 billion in assets, was conducted from June 5 to June 11, just before the SpaceX listing. However, the survey also revealed some investor concerns about the tech sector. Four out of five respondents identified holding global semiconductor stocks as the most crowded trade in the current market, the highest proportion recorded in the survey's history. Overall, investors slightly reduced their overweight allocation to the tech sector from 33% to 26%, and lowered their overweight allocation to global stocks from 50% to 38%. (Jin Shi)