Technology funds absorbed a record $12.3 billion net inflow last week, led by AI and semiconductor ETFs. Year-to-date tech inflows top $60 billion, exceeding 2023 and 2022 totals combined.
Technology funds absorbed a record $12.3 billion in net inflows last week, the largest single-week total on record, EPFR Global data show. The year-to-date total for the sector has already surpassed $60 billion, exceeding the full-year inflows for 2023 and 2022 combined.
The buying was concentrated in two broad pockets: AI-focused funds and semiconductor ETFs. Mega-cap growth stocks also drew strong demand. The iShares PHLX Semiconductor Sector Index ETF (SOXX) and the Direxion Daily Semiconductor Bull 3X Shares (SOXL) each saw their largest weekly inflows since June 2023. The Technology Select Sector SPDR Fund (XLK) pulled in more than $2.8 billion on its own.
The inflow data show institutional allocators have stopped waiting for a rotation. For much of the first half, the expectation was that rate cuts would lift small caps and value stocks, pulling money from tech leaders. That shift has not occurred. The Russell 2000 is up roughly 3% year-to-date. The Nasdaq 100 is up more than 14%.
Semiconductor funds have been direct beneficiaries of the AI capex cycle. The Philadelphia Semiconductor Index has gained 22% this year, driven by NVIDIA and other names tied to data-center buildout. The SOXL inflow spike – a leveraged product that amplifies daily returns – reflects a tactical bet on continued momentum. Leveraged ETF flows tend to reverse quickly. The sheer size of the SOXL number, however, points to conviction rather than hedging.
Mega-cap tech stocks (Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA) accounted for roughly 60% of the S&P 500's total return through the first half. The flow data show that concentration has not scared new money away. If anything, it has attracted more. The top five stocks in the S&P 500 now represent 27% of the index, a level not seen since the dot-com peak. Strategists have warned about single-stock risk. The data suggest the market's response has been to buy more.
The question is what breaks the pattern. A sharp slowdown in AI-related earnings or a regulatory clampdown on chip exports would hit these funds disproportionately. A macro shock that forces broad de-risking would do the same. None of those triggers has arrived. The $12.3 billion figure is a statement of conviction: the market sees tech as the only game worth playing, and it is putting money behind that view.
Prepared with AlphaScala research tooling and grounded in primary market data: live prices, fundamentals, SEC filings, hedge-fund holdings, and insider activity. Each story is checked against AlphaScala publishing rules before release. Educational coverage, not personalized advice.