According to the Bank of America Global Fund Manager Survey, 53% of fund managers identified long positions in semiconductors as the most crowded trade in September 2026. This figure remains unchanged from August but marks a significant decline from the peak of 82% recorded in July.
The consensus around semiconductor stocks grew rapidly throughout the year. In April 2026, approximately 25% of managers viewed it as the most crowded trade, with the figure rising to 73% in May and 80% in June. The June survey included 198 managers overseeing $540 billion, while the July survey involved 210 managers with $555 billion in assets.
The sector's popularity is driven by AI-related demand for chips from companies such as Nvidia, AMD, and Taiwan Semiconductor. By mid-June 2026, the iShares Semiconductor ETF had gained 99% year-to-date, and the Philadelphia Semiconductor Index reached several all-time highs.
Market sentiment is shifting as concerns over a potential AI bubble, which worried 45% of managers in July, have been replaced by anxieties regarding rising bond yields in September. While managers remain net long, net overweight positioning in technology stocks dropped to 18% in July.
