BofA Survey Shows Managers Pile Into Equities

Seeking Alpha reports U.S. equities stumbled on Tuesday, with tech stocks under selling pressure ahead of Nvidia earnings slated for Wednesday. According to BofA's May Fund Manager Survey, allocations to equities rose from a net 13% overweight to a net 50% overweight, the largest monthly surge and the highest overall allocation since January 2022. The survey's cash level fell to 3.9% from 4.3%, which BofA notes is the biggest monthly drop since February 2024 and below the 4% threshold that historically triggers a sell signal with a median four-week loss of 1%, per Seeking Alpha.

Seeking Alpha cites Bloomberg reporting that Intel and Qualcomm have expressed interest in acquiring AI chip startup Tenstorrent, and that Tenstorrent has spoken with investment banks to explore options. Seeking Alpha also reports Business Insider coverage showing regulatory filings for a hedge fund launched by former OpenAI researcher Leopold Aschenbrenner contain large bearish positions against Nvidia and several AI chip stocks. Seeking Alpha further reports that Michael Burry increased holdings in MercadoLibre (added in the mid-1500s), Adobe (added in the low $250s), PayPal, and Lululemon (about $120), according to his Substack post. Finally, Seeking Alpha reports that NATO officials are discussing a potential operation to escort commercial ships through the Strait of Hormuz if the waterway remains effectively blocked.

A record-sized, rapid shift into equities in the BofA survey is an observable positioning change among managers, not a forecast. Industry data historically links very low cash buffers, here 3.9%, to periods of heightened short-term vulnerability in global stocks, which can amplify volatility around major events such as Nvidia earnings. For practitioners, this combination of elevated equity exposure and a high-profile earnings event increases the chance of larger intraday moves and liquidity stress in heavily weighted tech names.

Reporting that large chip incumbents have discussed Tenstorrent aligns with ongoing consolidation and talent-acquisition activity in the AI accelerator market. Separately, regulatory filings revealing substantial bearish bets by a fund tied to a former OpenAI researcher are a concrete example of speculative positioning around AI-infrastructure winners like Nvidia, as reported by Business Insider via Seeking Alpha.

Indicators to monitor include updates from Nvidia's earnings release, short interest and intraday liquidity in major AI-chip and large-cap tech names, subsequent BofA survey moves that could reveal whether the allocation surge proves durable, official statements from Tenstorrent or potential acquirers if M&A talks surface, and public comment from NATO or national navies about escort operations in the Strait of Hormuz. These items are observable signals to follow; sources cited above provide the baseline reporting.