Surge in Semiconductor Stocks: Who’s Taking the Lead?

Cam White | July 3, 2024

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Nvidia Corp. continues to dominate as the top semiconductor stock among active fund managers, according to recent data from BofA Equity Strategy. However, the report highlights some intriguing shifts in the semiconductor sector, with notable growth in Broadcom Inc.’s popularity.

In June, Broadcom’s stock was held by 45.8% of active fund managers, a significant increase from 44.9% in May and a substantial leap from 28.7% in June 2023. This surge propels Broadcom to the second most-owned semiconductor stock, surpassing Applied Materials Inc. and Advanced Micro Devices Inc. (AMD), which were previously ahead of Broadcom.

Broadcom’s Ascension

Broadcom’s rapid ascent in fund managers’ portfolios is a key highlight. Just a year ago, six semiconductor stocks had higher ownership levels than Broadcom. Now, Broadcom’s strong performance and strategic positioning have driven it to the forefront. In June, Applied Materials moved to the third spot with 39.5% ownership, up from 38.9% in May. In contrast, AMD saw a decline in ownership, dropping to 39.3% from 40.3%.

Quarterly Ownership Trends

The quarter-over-quarter data further underscores Broadcom’s momentum. Its ownership climbed from 41.7% to 45.8%, while Applied Materials saw an increase from 36.1% to 39.5%. These shifts indicate a growing confidence among fund managers in these companies’ future prospects.

Nvidia’s Position and Relative Weighting

Despite Nvidia’s leadership in terms of ownership, BofA analysts, led by Vivek Arya, noted that Nvidia and other heavily-owned chip stocks are often underweight in funds relative to their weightings in the S&P 500. Nvidia, for instance, was owned by 68.4% of active managers but had a relatively low weighting of 0.99x in June, down from 1.08x a year earlier. This discrepancy suggests that while fund managers are confident in Nvidia’s long-term outlook, they are cautious about overexposure.

Broadcom’s Weighting and Largest Shareholder Impact

Broadcom’s situation presents an interesting contrast. It appeared to have a higher relative weighting at 1.68x. However, when excluding the influence of its largest shareholder, this figure drops to 0.58x, highlighting the significant impact of major stakeholders on the overall ownership landscape.

Notable Declines

The BofA data also identified several semiconductor stocks that experienced declines in ownership. ON Semiconductor Corp., Analog Devices Inc., and Intel Corp. saw their ownership percentages drop significantly from the end of the first quarter. ON Semiconductor’s ownership fell to 8.8% in June from 12.1% in March, Analog Devices’ ownership decreased to 22.9% from 24.9%, and Intel’s ownership dropped to 13.6% from 14.5%.

Key Takeaways

  • Nvidia Corp. remains the most-owned semiconductor stock among active fund managers but is often underweight in portfolios.
  • Broadcom Inc. has seen a significant increase in ownership, moving to the second position among semiconductor stocks.
  • Applied Materials Inc. and AMD have also seen notable shifts in their ownership percentages.
  • Several semiconductor stocks, including ON Semiconductor Corp., Analog Devices Inc., and Intel Corp., experienced declines in fund manager ownership.


The shifting dynamics in semiconductor stock ownership among active fund managers reflect changing sentiments and strategic adjustments in the sector. Nvidia’s continued dominance, coupled with Broadcom’s rapid rise, underscores the evolving landscape of semiconductor investments. As fund managers navigate these changes, the performance and strategic moves of these key players will be closely watched.