Most investors believe the AI-driven stock market rally is still in its expansion phase, according to Bank of America’s latest fund manager survey.

More than half of respondents said the sector remains in a “boom” period characterized by strong momentum and FOMO-driven buying, while relatively few see conditions consistent with a market top or broad profit-taking.

The findings come amid continued strength in AI-related stocks. The Philadelphia Semiconductor Index has almost doubled year-to-date, with shares of Micron, Arm, and Intel posting gains of more than 200%. At the same time, SpaceX’s $1.8 trillion IPO valuation has fueled debate about whether enthusiasm surrounding AI and technology stocks is becoming excessive.

Even as investors remain heavily invested in equities, some caution is beginning to surface. Semiconductor stocks were identified as the market’s most crowded trade by 80% of respondents, the highest level on record. Investors also pared back their overweight allocations to technology and global equities, though cash allocations stay near historic lows.