According to a report released by Bank of America, despite the strong performance of the semiconductor industry this year, the industry's relative weight in active funds continues to decline.
Bank of America said that the relative weight of the semiconductor industry fell by 9% to 0.99 times, and has continued to decline from 1.16 times in June 2023, to below the peak of 1.36 times in March 2017.
Despite the decline in relative weight,$NVIDIA (NVDA.US)$the industry still has the widest range of holders, with 68% of fund managers holding the stock. This proportion is still at a historical high and increased by 10 basis points compared to the previous period, indicating that fund managers are still putting this semiconductor giant into their portfolios.
The stock with the largest increase in quarter-on-quarter exposure is Cadence Design Systems (CDNS.US).$Broadcom (AVGO.US)$, $Applied Materials (AMAT.US)$, $Micron Technology (MU.US)$, $Cadence Design Systems (CDNS.US)$ and $Qualcomm (QCOM.US)$, and$ON Semiconductor (ON.US)$, $Analog Devices (ADI.US)$ and $Intel (INTC.US)$Nvidia (NVDA.US) is still the most widely held semiconductor company in the S&P 500 index, followed by Broadcom (45.8%), Applied Materials (39.5%), AMD (39.3%), Lam Research (32.8%), and Texas Instruments (28.5%). All six companies achieved quarter-on-quarter growth, although the holding of AMD and Texas Instruments decreased year-on-year.
The most overallocated S&P 500 semiconductor stocks in investment portfolios include new$Synopsys (SNPS.US)$, $Teradyne (TER.US)$ , Cadence Design Systems, and$Texas Instruments (TXN.US)$, and$Qorvo (QRVO.US)$, $Microchip Technology (MCHP.US)$The weight of On Semiconductor and Intel shows the largest decline.
The stocks with the most overallocated long positions in investment portfolios include Microchip Technology, On Semiconductor, Texas Instruments, and Applied Materials, while the stocks with the most overallocated hedge funds include Teradyne, Qualcomm, Micron, Cadence Design Systems, and Broadcom.$KLA Corp (KLAC.US)$while the hedge fund's most over-allocated stocks include Teradyne, Qualcomm,$Lam Research (LRCX.US)$Micron, Cadence Design Systems, On Semiconductor, Teradyne, and Qorvo.
Nvidia is still the most widely held semiconductor company, followed by Broadcom (45.8%), Applied Materials (39.5%), AMD (39.3%), Lam Research (32.8%), and Texas Instruments (28.5%). All six companies achieved quarter-on-quarter growth, although the holding of AMD and Texas Instruments decreased year-on-year.$S&P 500 Index (.SPX.US)$Broadcom is the second most widely held semiconductor company in the S&P 500 index.
In the investment portfolio, the over-allocated S&P 500 semiconductor stocks include new$Cisco (CSCO.US)$Teradyne, KLA Corp, Qualcomm, Micron Technology, and Cadence Design Systems (relative to index weights 1.77x, 1.71x, 1.68x, 1.35x, and 1.32x, respectively). The least overallocated stocks include Qualcomm, Qorvo, and Cadence Design Systems. $Skyworks Solutions (SWKS.US)$And Teradyne.
It is understood that Bank of America uses its stock strategy data to observe breadth (percentage of fund managers holding sample stocks) and depth (the weight of the stock in the investment portfolio relative to its weight in the S&P 500 index).
Edited by Jeffrey