BofA Poll Finds Tech Exposure at Highest Level Since 2020

Global fund managers are currently the most exposed to technology stocks since the post-pandemic rebound, according to a survey conducted by Bank of America Corp. The proportion of respondents who are overweight the tech sector has climbed to 37%, up from 30% in the previous month, marking the highest level recorded since August 2020.

This increase in positioning comes as investors question whether the substantial spending on artificial intelligence will generate sufficient returns to justify current valuations. While AI has driven nearly 120% gains in the S&P 500 Index over a four-year bull run, sentiment is shifting. In the October survey, 45% of participants agreed that an AI bubble will emerge in 2027, while 42% said no.

The crowding in the sector is evident in specific market segments. Respondents identified global semiconductor stocks as the most crowded trade in equities. This sentiment contributed to sharp declines in South Korean memory giants Samsung Electronics Co. and SK Hynix Inc. on Tuesday, which pulled an Asian stocks benchmark to its lowest level since August. Contracts tracking the US tech-heavy Nasdaq 100 index also slid 0.6%.

Despite the tech-heavy focus, investors showed less pessimism regarding bonds than they have since May 2025. Approximately 37% of participants indicated that a 10-year Treasury yield at 6% would prompt them to move allocation from stocks to bonds. Another 19% said they are already shifting their allocation in that direction. At the time of the report, the 10-year yield stood at 5.19% on Tuesday morning.

The survey was conducted from October 2 to October 8 and gathered responses from 161 participants managing $453 billion in assets.