Fund Managers Favor AI and Semiconductor Stocks
Fund managers in China have shown a strong interest in artificial intelligence (AI) and semiconductor stocks in August. This comes despite a significant sell-off in these sectors the month before. A survey by BofA Global Research found that 73% of the 98 fund managers polled chose AI and chips as their top investment themes. This is an increase from 60% in July and 50% in June. The survey included participants managing $272 billion in assets from August 7 to 13.
The renewed interest follows a tough July. During that month, the Philadelphia Semiconductor Index fell about 21%. This marked its worst monthly performance since October 2008. In Hong Kong, key semiconductor stocks like GigaDevice and Montage Technology saw sharp drops. GigaDevice's stock price fell from HK$1,188 to HK$459. Despite these challenges, the Star Market 50 index, which includes many chipmakers, rose by 9% in August. This helped recover some of the 26% loss from the previous month.
Analysts say that China's uneven economic recovery is driving renewed interest in technology stocks. Consumption and the housing market are still struggling, making up about 70% of the economy. Meanwhile, the tech sector remains a key growth driver. Zheng Xiaoxia, an analyst at Hua An Securities, said, "There’s a big chance that technology stocks will revisit their highs of June and there’s more room for the rebound to run." Investors are waiting for interim reports expected in late August to confirm the strength of the tech industry.
Related coverage: Tencent Q2 Revenue Rises 11% Amid AI Investment Surge.
The renewed interest in AI and semiconductor stocks is likely to have a positive effect on the technology sector. Fund managers are shifting their focus back to these areas after a period of decline. This trend could lead to more volatility in semiconductor stocks and related indices. Investors will be watching for upcoming interim reports from tech companies. These reports could provide more insights into sector performance and investor sentiment.
Based on reporting by: scmp.com