According to Bank of America's December survey of European fund managers, investors continue to raise their exposure to tech stocks even as they label the "Magnificent Seven"—Alphabet, Amazon.com, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla Motors—as a crowded trade.

The survey showed a net 21% overweight in tech stocks, up 12 percentage points from the previous month, marking the largest sector rotation into tech since July 2024.

At the same time, 54% of fund managers identified "long Magnificent Seven" as the most crowded trade. Global fund managers remain most underweight in the energy sector, with a net 26% underweight this month.