Tech shares see biggest ever weekly inflow on AI boom-BofA

FILE PHOTO: Nvidia's Grace Hopper superchips are displayed at Gigabyte during COMPUTEX Taipei, one of the world's largest computer and technology trade shows, in Taipei, Taiwan May 30, 2023. REUTERS/Ann Wang/

LONDON (Reuters) -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 in just three sessions that pushed its market valuation above $1 trillion at one point.

Seven stocks - Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, Meta and Tesla - account for 8.8 percentage points of the S&P 500's 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.

Cash funds, normally in demand when investors are nervous, also saw inflows of $11.3 billion, their six straight week of inflows, while gold funds saw $200 million of outflows, according to BofA.

(Reporting by Alun John; Editing by Amanda Cooper)

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In Tech News

Thailand expects Tesla, Google, Microsoft to invest $5 billion -prime minister
'Double check': Google's chatbot Bard can now fact-check its answers
Google's chatbot Bard wants access to your emails – creepy or handy?
YouTube to introduce AI-powered tools for creators
How anime helped 'Final Fantasy XVI' get the franchise’s groove back
California governor vetoes bill banning robotrucks without safety drivers
X social media's India, South Asia policy head Gupta resigns-sources
Nasa�technology can spot wine grape disease from the sky. The world’s food supply could benefit
As California fires worsen, can AI come to the rescue?
Raw meat-eating Liver King and other health influencers face mounting lawsuits

Others Also Read