Global investor exposure to tech stocks highest since 2020, Bank of America Survey shows

Global investors who have chased the AI-powered equity rally are the ones that are most exposed to technology stocks ever since the rebound from the pandemic six years ago, as per a Bank of America Corp poll.

The proportion of fund managers that are overweight on the tech sector have has increased from 30% last month to 37% — the highest since August 2020, as per the survey. Around 45% respondents agree there will be an AI bubble next year, while 42% say there won’t.

AI has been the most popular trade in equities, driving gains of nearly 120% in the S&P 500 Index during a four-year bull run. However, some of the enthusiasm around AI seems to be fading as investors question if returns would justify the heavy spending on the tech.

The October BofA survey’s respondents said global semiconductor stocks have been the market’s most crowded trade.

On Tuesday, sharp falls in South Korean memory giant firms Samsung Electronics Co and SK Hynix Inc pulled an Asian benchmark to its its lowest level since August. Contracts that track the US tech-heavy Nasdaq 100 index declined 0.6%

Meanwhile, investors have turned the least pessimistic on bonds ever since May 2025. Around 37% of the participants said the 10-year Treasury yield at 6% will prompt them to move to bonds from stocks, while around 19% said they have already been shifting allocation. The 10-year yield was at 5.19% this morning.

The survey was conducted from October 2 October 8 and comprised 161 participants managing $143 billion in assets responding to the questions.

With inputs form Bloomberg