Active Fund Managers Shift Focus to Broadcom and Applied Materials

  • Nvidia is the most-owned chip stock among active fund managers
  • Broadcom’s ownership has grown rapidly
  • Broadcom ranks second in semiconductor stocks
  • Applied Materials is in third place
  • Nvidia has a relatively low weighting despite confidence in its long-term outlook

Nvidia Corp. remains the most-owned semiconductor stock among active fund managers, according to BofA Equity Strategy data. However, Broadcom Inc. is rapidly gaining ground, with ownership increasing from 44.9% in May to 45.8% in June. Applied Materials Inc. follows in third place with a 39.5% ownership rate. Despite strong confidence in Nvidia’s long-term outlook, its relative weighting has decreased to 0.99x from 1.08x a year ago. Broadcom’s relative weighting is 1.68x, but this drops to 0.58x when excluding the company’s largest shareholder. ON Semiconductor Corp., Analog Devices Inc., and Intel Corp. experienced declines in ownership percentages from Q1 to June.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the growth in ownership of Broadcom Inc. shares among active fund managers and compares it with other semiconductor stocks. It also mentions the underweight status of Nvidia and some losers from BofA data. However, there is a brief opinion-based statement at the end which slightly deviates from the main topic.
Noise Level: 7
Noise Justification: The article provides some relevant information about the growth of Broadcom’s ownership among active fund managers and compares it with other semiconductor stocks, but it lacks in-depth analysis or insights. It also includes unrelated advertisements and promotional links.
Public Companies: Nvidia Corp. (NVDA), Broadcom Inc. (AVGO), Applied Materials Inc. (AMAT), Advanced Micro Devices Inc. (AMD), ON Semiconductor Corp. (ON), Analog Devices Inc. (ADI), Intel Corp. (INTC)
Key People: Vivek Arya (BofA analyst), Pat Gelsinger (Intel CEO)

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Financial Relevance: Yes
Financial Markets Impacted: Semiconductor stocks
Financial Rating Justification: The article discusses the ownership of semiconductor stocks by active fund managers and their impact on the financial markets, specifically mentioning Nvidia Corp., Broadcom Inc., Applied Materials Inc., Advanced Micro Devices Inc., ON Semiconductor Corp., Analog Devices Inc., and Intel Corp. The changes in ownership percentages and relative weightings of these companies can affect their stock prices and the overall market sentiment for semiconductor stocks.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article. It discusses changes in ownership of semiconductor stocks among active fund managers and their relative weightings.

Reported publicly: www.marketwatch.com