New Delhi, Aug. 19 -- Bank of America's August survey has confirmed that fears of an AI bubble are growing on Wall Street.

About 32% of fund managers suggest that an AI bubble is the biggest risk to markets, even bigger than the current geopolitical turmoil and the inflation risk.

Yet paradoxically, the bets on semiconductor stocks, once the most crowded trade, have fallen sharply from 82% to 53% in just one month. This suggests that smart investors might have already started moving away from AI stocks as talk of a bubble grows.

According to the survey, investors are increasingly shifting towards defensive, value and cyclical stocks, and slowly moving away from high-flying AI trade

About 59% of fund managers are now turning to value, ...