In the past week, investors have been injecting funds into technology funds at an unprecedented rate, driving winners in the AI field such as$NVIDIA (NVDA.US)$to briefly surpass$Microsoft (MSFT.US)$to become the company with the highest market cap in the world, due to the surge in demand for its products.

Over the past week, investors have been pouring funds into technology funds at an unprecedented rate, pushing up the demand for winners in the field of artificial intelligence, such as Nvidia (NVDA),

The technology sector drove most of the S&P 500 index's gains in 2024, especially in June, thanks in large part to the rise of Nvidia.

Michael Hartnett, a strategist at Bank of America, wrote a weekly report on fund flows, in which he believed that the surge in interest in US technology stocks was due to the recent plunge in the European market.

Hartnett also highlighted the concerns expressed by optimistic investors that the rise of indexes such as the S&P 500 and the Nasdaq Composite Index has become too dependent on technology stocks, while continuing to view lagging areas of the market, such as small-cap stocks, as “uninvestable”.

Hartnett wrote in a memo to clients: "US stocks are once again benefiting from the volatility in European equities, with investors bullish on Nvidia and bearish on real estate investment trusts, hoping that the DAX index, homebuilders, Nikkei 225 and other indices won't be hit."

According to data from Bank of America, the entire stock fund sector saw strong inflows over the past week, with investors putting $25.6 billion into stocks, the highest total since March.

Later this week, technology stocks showed signs of weakness, and Nvidia handed over the crown of the world's most valuable listed company to Microsoft after just one trading day. As a result, the Nasdaq Composite Index, the focus of technology stocks, ended its longest run of gains since 2024 on Thursday.

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