Svmuu News: According to a survey by Bank of America, the rally in AI stocks appears set to continue. Most investors believe that FOMO is still driving this trading theme. In the bank’s monthly survey, approximately 56% of fund managers chose the term “boom” to describe the current stage of the AI cycle. This typically refers to a period when a market rally continues to gain momentum and attracts more investors who fear missing out on the rally. Only 21% of respondents believed the sector had entered a “frenzy” phase, in which stock valuations are pushed to extreme levels; while another 9% of respondents described the AI sector as being in a “profit-taking” phase. The survey covered investors managing a total of $465 billion in assets and was conducted from June 5 to June 11, just ahead of SpaceX’s IPO. However, the survey also revealed some concerns among investors regarding the technology sector. Four-fifths of respondents believed that buying and holding global semiconductor stocks was currently the most crowded trade in the market, a proportion that set a record high in the survey’s history. Overall, investors slightly reduced their overweight allocation to the tech sector from 33% to 26% and lowered their overweight allocation to global equities from 50% to 38%. (Jin Shi)