Mutual Funds Boost SiTime Holdings as Semiconductor Weight Hits Decade High
SITM•Mutual funds entered Q2 with their lowest software exposure since at least 2012 while increasing positions in semiconductors including SiTime. Hedge funds similarly reached record-high semiconductor weights versus software, boosting holdings in Lam Research, Applied Materials and ASML as tech stocks face AI disruption fears.
1. Sector Rotation Favors Semiconductors
Mutual funds began Q2 with the smallest software stock allocation since at least 2012, while boosting their semiconductor weighting to the highest level versus software in over a decade. Hedge funds mirrored this shift, reaching record-high semiconductor exposure and cutting back on software positions as AI disruption fears grow.
2. Increased Institutional Positions
In this rotation, hedge funds added to Lam Research, Applied Materials and ASML, while mutual funds increased stakes in Intel and SiTime. The aggregate moves underscore a broad-based preference for chipmakers over traditional software firms.
3. Potential Effects on SiTime
The uptick in mutual fund allocations to SiTime could enhance liquidity and investor confidence, providing a near-term support level for the stock. Continued semiconductor sector momentum may drive further fund inflows, though broader market sentiment on AI remains a key risk factor.
