Despite a summer swoon for tech stocks as investors fret over capex spending at the likes of Meta (META), Alphabet (GOOG), and Amazon (AMZN), tech still looks to be the place to be when ******* yzing fund inflows.
Tech stocks are on track for a yearly inflow of $216 billion, according to new data from Bank of America Global Research (see chart below). The figure dwarfs the total annual inflows of each year dating back to 2015.
The Nasdaq Composite's (^IXIC) forward price-to-earnings ratio is about 26 times, compared to 20.4 times for the S&P 500 (^GSPC), per Yahoo Finance AlphaSpace ******* ysis. The relative premium for the Nasdaq underscores the sector's higher growth tendencies and helps explain why investors often overweight the sector in their portfolios.
BofA's tech fund inflows data sends a key message to investors: While volatility has entered the ******* e on AI overspending fears, confidence in the long term isn't being lost.
"AI monetization is increasingly visible through backlog and cloud revenues. As elevated backlogs convert into recognized revenue, cloud growth should remain well supported, helping validate rising AI capex, strengthen order coverage, and further ease return on invested capital concerns," JPMorgan strategist Dubravko Lakos-Bujas wrote in a note on Monday.
#fund #data #times
Tech stocks are on track for a yearly inflow of $216 billion, according to new data from Bank of America Global Research (see chart below). The figure dwarfs the total annual inflows of each year dating back to 2015.
The Nasdaq Composite's (^IXIC) forward price-to-earnings ratio is about 26 times, compared to 20.4 times for the S&P 500 (^GSPC), per Yahoo Finance AlphaSpace ******* ysis. The relative premium for the Nasdaq underscores the sector's higher growth tendencies and helps explain why investors often overweight the sector in their portfolios.
BofA's tech fund inflows data sends a key message to investors: While volatility has entered the ******* e on AI overspending fears, confidence in the long term isn't being lost.
"AI monetization is increasingly visible through backlog and cloud revenues. As elevated backlogs convert into recognized revenue, cloud growth should remain well supported, helping validate rising AI capex, strengthen order coverage, and further ease return on invested capital concerns," JPMorgan strategist Dubravko Lakos-Bujas wrote in a note on Monday.
#fund #data #times
50 mins. ago
