AI Boom Fuels Record Weekly Inflow For Tech Stocks: BofA

Nvidia's Grace Hopper superchips on display at COMPUTEX Taipei, one of the world's largest computer and technology trade shows, in Taipei, Taiwan, on May 30, 2023. Photo: Reuters

Tech stocks recorded their biggest weekly inflows this week, as investors raced to be part of the artificial intelligence boom, according to BofA Global Research released on Friday.

Technology equities 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 in the biggest weekly inflow since February.

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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.

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

Reuters with additional editing by Sean O’Meara

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Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.