LONDON, June 2 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 SP 50039;s 10 yeartodate return, according to BofA39;s calcuations.

The market is bored of waiting for rates to cause recession and so is 39;back to biggest companies biggest margins biggest price to earnings multiples39;, 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

Source Reuters