Bank of America: Nvidia and Broadcom have the widest holdings, while Micron and AMD saw significant increases from active funds.

Bank of America Corp stated that among active fund managers in the U.S., NVIDIA Corporation (NVDA.US) and Broadcom Inc. (AVGO.US) have the most "extensive" holdings in the semiconductor sector, while the holdings of Micron Technology, Inc. (MU.US) and AMD (AMD.US) have also seen significant increases. Vivek Arya, an analyst at Bank of America Corp, wrote in a report to clients that, according to the bank's stock strategy data from August, the relative weight of the semiconductor industry is 1.15 times, higher than the software industry's 0.92 times and the information technology sector's 0.99 times. This relative weight for the semiconductor industry is greater than the 1.08 times observed in May and is close to the peak of 1.18 times reached in April 2023, following the launch of ChatGPT. While NVIDIA Corporation and Broadcom Inc. have the widest coverage in the S&P 500 index, followed by AMD, not all semiconductor stocks are held to the same extent. Skyworks Solutions, Inc. (SWKS.US) is the chip stock with the least fund holdings, with a holding ratio of only 3%, followed by Microchip Technology Incorporated (MCHP.US) and ON Semiconductor Corporation (ON.US) at approximately 6% and 7%, respectively. Fund managers are most overweight in stocks such as Ciena (CIEN.US), Amphenol (APH.US), KLA Corporation (KLAC.US), and Western Digital Corporation (WDC.US), while Skyworks Solutions, Inc., ON Semiconductor Corporation, Microchip Technology Incorporated, and Qualcomm (QCOM.US) are the most underweighted. Additionally, analysts found that fund holdings have concentrated in the fields of computing, storage, and semiconductor equipment, with holding ratios of 74%, 43%, and 40%, respectively. Among these, the storage segment saw the largest increase in holdings, rising 612 basis points from July; the semiconductor equipment segment increased by 324 basis points. Analysts explained: Holdings in the storage sector continue to soar, with AMDs holdings exceeding 50%, while the analog chip/EDA segment cools down; for individual stocks, Microns holdings increased by 608 basis points to 50%, making it the fourth largest semiconductor stock by fund holdings; meanwhile, NVIDIA Corporations holding ratio rose to 82%, and AMD reached 51% (relative weight up 7% month-on-month, 75% quarter-on-quarter). Analysts further noted: SanDisk (SNDK.US) saw its holdings leap 897 basis points to 24%, the largest increase among all individual stocks. The relative weight of the analog chip segment decreased by 4% month-on-month, and the EDA segment fell by 5%. Intel Corporation (INTC.US) continued to see its holdings rise, increasing by 205 basis points to 21%, but despite being ranked fifth by market capitalization, its holdings rank only 19th. NVIDIA Corporation and Broadcom Inc. are the only two semiconductor stocks on the broad sell list for providing funding for the SpaceX IPO, with funds selling off $4.4 billion and $2.7 billion respectively, with 44 funds participating in each. However, the approximately 1.2% short interest ratio for both stocks may indicate that this is a deleveraging of long positions; around 53% of funds currently hold SpaceX. Data also revealed other notable findings: Compared to long-only investors, hedge funds prefer Seagate Technology Holdings PLC (STX.US), Teradyne, Inc. (TER.US), SanDisk, Synopsys, Inc. (SNPS.US), and Arista Networks (ANET.US). In contrast to hedge funds, Skyworks Solutions, Inc., Western Digital Corporation, Marvell Technology, Inc. (MRVL.US), Monolithic Power Systems (MPWR.US), Microchip Technology Incorporated, NXP Semiconductors NV (NXPI.US), KLA, Intel Corporation, Corning Inc. (GLW.US), and Qualcomm have a higher weight among long-only investors.