LONDON (Reuters) – Funds specializing in technology stocks recorded their strongest weekly inflows in the week to May 31, driven by renewed investor interest in artificial intelligence (AI), shows a study published Friday by BofA Global Research.
Technology stocks have attracted 8.5 billion dollars (7.89 billion euros) of capital, the highest amount ever recorded, according to statistics from the American bank, which is based on data from EPFR.
Equity funds in general recorded net inflows of $14.8 billion over the period, their largest inflow since February.
Much of the inflows follow the surge in U.S. chipmaker Nvidia, whose valuation topped $1 trillion on Tuesday after a quarterly revenue forecast of $11 billion, or 50% above expectations.
The group plans to increase its offer to meet the growing demand for its artificial intelligence chips, used in particular for the ChatGPT software.
Investors are eyeing a “summer surge towards tech and equities,” BofA analysts wrote in a note that referred to a “baby-bubble” on AI.
The market “goes to bigger companies = bigger margins = bigger P/E (price/earnings ratio) multiples”, the analysts continue, adding however that they themselves remain bearish because of the rise in interest rates. interest.
According to the American bank, the “Magnificent 7” which are Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla contribute 8.8 percentage points to the return of 10% of the Standard & Poor’s index. 500 since the beginning of the year.
(Alun John, French version Laetitia Volga, editing by Kate Entringer)
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