Bank of America: Funds Aggressively Reduce Semiconductor Holdings, Shift to Energy

Golden Finance reported on July 20 that Bank of America released a report stating that as the semiconductor sector has seen a significant rebound this year, funds are rebalancing their portfolios by taking profits, leading to large-scale capital outflows from the semiconductor and software sectors. At the same time, to reduce excessive reliance on the artificial intelligence theme, capital is shifting toward traditional cyclical sectors such as energy and materials. Global active funds significantly reduce semiconductor and software holdings: Since the beginning of this year, in order to rebalance positions following the sharp rebound in the semiconductor sector, global active long-term funds have sold $77.4 billion worth of semiconductor stocks. Additionally, due to weakening profit momentum, funds have also sold $58.1 billion worth of software stocks. Capital flows into energy and materials sectors to diversify AI theme risks: As a hedge against over-concentration in the AI theme, funds have purchased $36.8 billion worth of energy stocks and $25.8 billion worth of materials stocks this year. In June alone, global funds made net purchases of $13.2 billion in energy and $4.1 billion in materials, while selling $11.9 billion in technology hardware and $8.1 billion in diversified financials.