Bank of America Says Long Semiconductors is the “Most Crowded Trade Ever”

Bank of America Says Long Semiconductors is the “Most Crowded Trade Ever”

Chip stocks have staged a historic run in 2026, and Bank of America's latest fund manager survey reveals just how extreme the crowding has become. Before you chase or fade the four AI-chip names at the center of it, the valuation spread between them tells a very different story for each.

The $3.2 Trillion Market Rotation: Why Big Tech Thrives as Semiconductors Tumble

Key Takeaways The Magnificent Seven ETF surged 2.3% midweek and climbed over 7% throughout July following June’s 9% decline Apple reached an all-time peak with a 4% gain, while Alphabet, Amazon, Meta, and Microsoft posted approximately 3% increases Chip stocks beyond Nvidia have hemorrhaged approximately $1.8 trillion in July, plunging into bear market conditions A staggering $3.2 trillion has shifted between Mag 7 and semiconductor stocks, res…

Markets in Motion: investors eye rotation beyond semiconductors

Bank of America fund managers now view long semiconductors as the most overcrowded trade on record. Gold has shifted from one of the market’s most overvalued assets to one of its most undervalued, according to investor sentiment. Financials and energy are showing improving short-term momentum, while technology leadership begins to moderate. Sentiment shifts could create new market opportunities Investor positioning is becoming increasingly conce…