Fund managers' tech overweight hits highest level since 2020

Global money managers held their largest allocation to technology shares in six years, according to Bank of America's October fund manager survey, published on Oct. 13 and reported by Bloomberg.

The share of managers overweight the tech sector climbed to 37% from 30% in September, the highest reading since August 2020, when markets were recovering from the pandemic selloff. The survey was carried out from Oct. 2 to Oct. 8 and drew 161 respondents overseeing $453 billion in assets.

Respondents were split on how long the artificial intelligence trade can run: about 45% said an AI bubble would form in 2027, against 42% who disagreed. Semiconductor stocks worldwide were identified as the most crowded position in markets.

AI-linked buying has carried the S&P 500 up by close to 120% over a four-year bull market, though investors have begun questioning whether spending on the technology will generate adequate returns. Shares of Samsung Electronics and SK Hynix fell sharply on Oct. 13, and futures on the Nasdaq 100 were down 0.6%.

Views on fixed income were the least negative since May 2025. About 37% of those polled said a 6% yield on the 10-year Treasury note would push them out of equities and into bonds, and roughly 19% said they had already begun doing so. The 10-year yield stood at 5.19% on the morning of Oct. 13.

This story was first reported by Bloomberg.