Why NVDA & AMD Remain Wall Street’s Chip Darling: BofA Reveals Fund Managers’ Bullish Stance

Semiconductor giants Nvidia and AMD continue to dominate institutional portfolios—despite market turbulence, these tech titans keep printing money for true believers.

Wall Street's worst-kept secret? Fund managers still can't quit their chip addiction. While retail traders chase meme stocks, the smart money doubles down on proven silicon performers.

Here's the cynical truth: in a world where most 'disruptive tech' fails to turn profit, GPU makers remain the rare exception—printing cash while pretending it's about 'AI innovation' rather than good old-fashioned oligopoly.

Meet Your ETF AI Analyst

• Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
• Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.

Nvidia Is Still the Most Owned Chip Stock

BofA’s October data showed that 76% of U.S. fund managers now own Nvidia, up 219 basis points from the prior quarter and 539 basis points from a year ago. This steady rise shows ongoing faith in the company.

Still, Nvidia’s portfolio weighting of 1.11x is only slightly higher than the 1.06x median among its top 16 tech and communication peers. BofA said this could mean some investors are taking profits after the stock’s big gains this year.

AMD Ownership Rises but Still Underweight

Advanced Micro Devices (AMD) saw more buying, with ownership rising to 24% from 20% in July. Yet this remains below last year’s 38%. Despite solid performance in 2025, BofA said AMD is still underweight in most portfolios, with a relative weighting of 0.19x.

Notably, AMD shares are up in premarket trading after the company held its 2025 Analyst Day on Tuesday. The chipmaker shared new growth targets and plans for its AI and data center business, drawing strong interest from Wall Street.

Following the event, several analysts remained upbeat about the stock and raised their price targets, citing confidence in AMD’s long-term earnings outlook. 

Investors Adjust Holdings in the Semiconductor Sector

Ownership gains were strongest in Synopsys (SNPS), which ROSE 466 basis points after its $35 billion Ansys deal, and in AMD, which increased 438 basis points. On the other hand, Qualcomm (QCOM), ON Semiconductor (ON), and Microchip Technology (MCHP) saw drops as demand for analog and industrial chips weakened.

BofA said the overall semiconductor sector weighting stands at 0.96x, slightly below December 2024 but higher than August levels, showing steady interest in chipmakers even as market swings continue.

Which Chip Stock Is the Best Buy?

Turning to Wall Street, out of the six stocks mentioned above, Synopsys shows the highest upside at 41%, followed by Microchip at 35% and ON Semiconductor at 22%. Nvidia holds a Strong Buy rating with 23% upside, while AMD and Qualcomm are Moderate Buys with 17% and 14% upside, respectively.

Overall, analysts stay positive on the group, with Nvidia and Qualcomm earning top Smart Scores of 9 and 10.