BofA Data Shows Shift in Semiconductor Fund Exposure
Bank of America data reveals that active U.S. fund managers have broadened their semiconductor holdings, with memory chips and equipment seeing significant increases in ownership.
Bank of America’s August Equity Strategy data indicates that active U.S. fund managers have increased their relative weighting in semiconductor stocks to 1.15 times. This level is up from 1.08 times in May and sits close to the post-ChatGPT peak of 1.18 times recorded in April 2023. The shift signals a broader allocation into the chip sector beyond the initial leaders.
According to the report, ownership of memory and other chip groups has risen while consumer exposure declined. This change in positioning reflects a strategic reallocation toward core infrastructure components, specifically memory and manufacturing equipment, rather than consumer-facing devices.
Memory Stocks Lead Ownership Gains
Micron Technology (MU) saw its fund ownership climb to 50%, marking a 608 basis point increase month over month. Micron was part of a broader trend where memory stocks recorded the largest monthly rise in ownership at 612 basis points. This surge highlights growing confidence in data storage and high-bandwidth memory solutions driven by AI workloads.
SanDisk (SNDK) posted the most significant individual gain in the sector, with ownership rising 897 basis points to reach 24%. The sharp increase in fund allocation to SanDisk underscores the specific demand for NAND flash memory solutions within the broader semiconductor portfolio.
Compute Leaders Maintain Dominance
Nvidia (NVDA) remains the most widely held semiconductor stock among active managers, with 82% ownership. Broadcom (AVGO) also maintained a leading position in the sector. Advanced Micro Devices (AMD) reached 51% ownership, indicating sustained institutional interest in high-performance computing alternatives.
Bank of America analyst Vivek Arya noted that fund positioning remains concentrated in compute, memory, and semiconductor equipment. The data suggests that while new names are entering the portfolio, the core holdings in high-performance computing and essential infrastructure remain the primary drivers of sector exposure.
Equipment Sector Sees Strong Support
Semiconductor equipment stocks recorded a 324 basis point increase in ownership during the month. This gain places the equipment group second only to memory in terms of monthly ownership growth. The increase reflects the critical role of manufacturing tools in sustaining supply chain resilience and capacity expansion for chipmakers.
The broadening of fund exposure to these specific sub-sectors indicates a maturing allocation strategy. Investors are moving beyond single-stock bets in compute towards a more diversified approach that includes the critical supply chain components of memory and fabrication equipment.
