Bank of America's latest survey: More than half of fund managers are warning that "AI stocks are in a bubble".

According to the latest fund manager survey from Bank of America, with the recent strong rally of artificial intelligence (AI) concept stocks this year, the percentage of global fund managers who believe that this sector has entered a bubble has hit a new high. In this October survey, about 54% of respondents stated that tech stocks are currently overvalued, while just last month, almost half of the respondents were not concerned about the "overvaluation of tech stocks". At the same time, concerns about overvaluation of global stock markets also peaked in this survey. Driven by the market's enthusiasm for investment in the AI field and expectations of productivity improvement, US stocks have repeatedly hit new highs this year. The Nasdaq 100 index, which is mainly composed of tech stocks, has risen by 18% so far this year, with a forward price-to-earnings ratio of nearly 28 times, higher than the average level of 23 times in the past decade. Such rapid gains have led some market participants to question whether valuations have already priced in the potential profit of companies. However, Goldman Sachs strategists still believe that it is too early to worry about a tech bubble. The stock allocation of fund managers also reflects the market's optimistic mood to a certain extent. The BofA survey shows that the allocation of funds to US stocks has reached a nearly eight-month high - a level that dates back to before concerns about tariffs escalated. Meanwhile, concerns about an economic recession have dropped to the lowest level since early 2022. Although cash holdings have decreased, BofA strategist Michael Hartnett stated that market anxiety about AI and concerns about the private credit market are causing a cooling of overall bullish sentiment. Recent concerns about the US-China trade war have further disrupted the overall market sentiment. The Nasdaq 100 index led the decline in US stocks, with its futures falling by about 1% on Tuesday. The BofA survey also shows that the "AI bubble" is seen as the biggest tail risk in the current market, followed closely by risks such as resurging inflation, concerns about the independence of the Federal Reserve, and the risk of dollar depreciation. This survey was conducted from October 3rd to 9th and covered 166 fund managers with assets under management totaling $400 billion.