Nvidia Tops Fund Holdings Despite Semiconductor Sector Underweighting

Nvidia Corp. (NASDAQ: NVDA) remains the most widely held semiconductor stock among U.S. active fund managers, according to April data from BofA Securities. The chipmaker was included in 73% of fund portfolios, marking a 67-basis-point increase from the prior quarter and a 518-point rise year over year. However, Nvidia’s relative weighting stood at just 1.05x its share of the S&P 500—below the 1.11x median for top tech and communication stocks.

Broadcom Inc. (NASDAQ: AVGO) saw the biggest quarterly surge in ownership, rising 875 basis points to 64.6%. Applied Materials (NASDAQ: AMAT) followed with 30.8%, though it posted a 417-point decline. Texas Instruments (NASDAQ: TXN) dropped sharply to 28.9%, down over 1,200 basis points. Synopsys (NASDAQ: SNPS) and Lam Research (NASDAQ: LRCX) rounded out the top six with 25.3% and 24.8% ownership, respectively.

Overall, semiconductor stocks were underweight in portfolios, with sector-wide relative weighting falling to 0.90x in April from 1.01x in December. Notably, Synopsys was the most overweight at 1.71x, followed by Broadcom and KLA Corp.

Intel Corp. (NASDAQ: INTC) showed one of the largest quarter-over-quarter increases in fund interest, though total ownership remained low at just 9%. Meanwhile, AMD (NASDAQ: AMD), Qualcomm (NASDAQ: QCOM), and Skyworks (NASDAQ: SWKS) were among the most underweighted.

Long-only funds favored Micron (NASDAQ: MU), Texas Instruments, Synopsys, Broadcom, and NXP Semiconductors (NASDAQ: NXPI), while hedge funds leaned toward Lam Research, Teradyne (NASDAQ: TER), and KLA. Short interest was highest in Wolfspeed (NYSE: WOLF) and Axcelis (NASDAQ: ACLS), while Nvidia and Broadcom had the lowest.

BofA analysts suggest Nvidia’s underweighting versus peers signals room for further portfolio rotation.