The recent surge in artificial intelligence investments has led to record inflows of about $8.7 billion into technology funds, according to Bank of America Corp. strategists. This trend was highlighted by Nvidia Corp. briefly becoming the world’s most valuable company, with a market capitalization of $3.3 trillion, surpassing Microsoft Corp. U.S. stocks reached new highs as a result, prompting some Wall Street strategists to raise their year-end targets for the S&P 500 index.
Despite this positive momentum, concerns about equity concentration risk are prevalent among investors, even as they seek greater exposure to AI-related investments. European stocks, on the other hand, have experienced a setback due to political turmoil in France, with European stock funds seeing outflows for the fifth consecutive week.
On a more positive note, global stock funds saw significant additions totaling $25.6 billion, the largest influx since March. Overall, the AI frenzy and its impact on the technology sector continue to drive market activity, with investors closely monitoring developments and adjusting their strategies accordingly.
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https://finance.yahoo.com/news/roads-lead-nvidia-tech-sees-081302333.html
