Tech shares see biggest ever weekly inflow on AI boom

Technology equity funds saw their biggest weekly inflows on record in the week to Wednesday, driven by a surge in investor interest in artificial intelligence, according to BofA Global Research released on Friday.

Tech stocks saw $8.5 billion of inflows in the week to Wednesday, the most on record, BoFa said, citing EPFR data. Stocks in general saw $14.8 billion of inflows the largest weekly inflow since February.

Part of that swell was thanks to a 30% rise in shares of chipmaker Nvidia (NVDA.O) in just three sessions that pushed its market valuation above $1 trillion at one point.

Seven stocks – Apple (AAPL.O), Microsoft (MSFT.O), Google parent Alphabet (GOOGL.O), Amazon (AMZN.O), Nvidia, Meta (META.O) and Tesla (TSLA.O) – account for 8.8 percentage points of the S&P 500’s (.SPX) 10% year-to-date return, according to BofA’s calcuations.

The “market (is) bored of waiting for rates to cause recession” and so is ‘back to biggest companies = biggest margins = biggest (price to earnings multiples)’,” the analysts wrote in a note, saying that they themselves remain bearish due to higher interest rates.

This report’s information was first seen on REUTERS; to read more, click this link.