There has been a notable uptick in the holding scale of public funds within the electronics and telecommunications sectors. Currently, the position of A-share institutional investors in the technology (TMT) sector has surged past the 40% mark, edging closer to historical peaks. This escalation in portfolio concentration and valuation levels has ignited market anxieties regarding sector crowding. Some institutions are of the opinion that tech stocks are inching towards 'bubble' territory, a sentiment that is fueling short-term volatility and exerting pressure on style rebalancing.

Nonetheless, there are contrasting viewpoints. These suggest that with the proliferation of passive index products such as ETFs and the ongoing structural shifts in the stock market precipitated by economic transformation, the traditional metrics for assessing crowding indicators may require a reevaluation. Propelled by the AI revolution and prevailing industrial trends, the majority of institutions continue to harbor a bullish outlook on the medium- to long-term investment prospects of tech stocks.