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Global investors are directing more capital toward US technology funds as demand for artificial intelligence and semiconductor exposure grows. Technology funds attracted a record $12.3 billion during the week ended June 10, according to Bank of America Securities data.
The inflow followed another $9 billion intake in the previous week, the fourth-largest weekly total recorded. Meanwhile, emerging market funds have faced steady withdrawals, with India among the markets recording the heaviest foreign selling in 2026.
The $12.3 billion weekly intake marked the largest flow into global technology funds since comparable records began in 2017. It also lifted the four-week average to $5.8 billion, the second-highest level on record.
A large share of the money entered funds linked to US stocks and semiconductor companies. The Direxion Daily S&P 500 Bull 3X Shares ETF, known as SPXL, received about $3 billion. The iShares Semiconductor ETF, or SOXX, attracted another $2.9 billion.
US equities have now recorded inflows for 11 consecutive weeks. This is the longest sequence since December 2025. The figures show that investors are concentrating capital in areas tied directly to AI infrastructure, including chipmakers and large technology companies.
Still, the use of leveraged funds such as SPXL shows that part of the weekly total came from products designed to magnify daily market movements. As a result, the flows do not represent only long-term purchases of individual technology stocks.
Global emerging market funds lost close to $10 billion over six consecutive weeks, according to Elara Capital’s Global Liquidity Tracker. India recorded $770 million in withdrawals during the week ended June 10, including $460 million from dedicated India funds.
Foreign investors also removed about $4.9 billion from Indian equities in May. Across the first five months of 2026, withdrawals reached roughly ₹2.25 lakh crore, or more than $26 billion. That total has already exceeded the amount removed throughout 2025.
India’s performance against broader emerging market funds has also weakened. Elara Capital placed its one-year relative underperformance at 48%, the lowest level in the available data. Three-year relative performance also reached a record low.
The shift has not affected every Asian market in the same way. South Korean stocks received $5.9 billion in the week ended June 10, their largest weekly intake since March. South Korea’s semiconductor sector gives investors more direct exposure to the global AI hardware trade.
The latest movements suggest that investors are adjusting their AI positions rather than leaving the sector. Capital is moving toward companies and funds viewed as direct beneficiaries of spending on chips, cloud computing and data centers.
Morgan Stanley estimates that global AI-related capital spending “could reach” about $900 billion in 2026 and “may rise” to nearly $1.25 trillion in 2027. These estimates remain forecasts and depend on planned spending by technology companies being completed.
India has less direct exposure to semiconductor manufacturing and large-scale AI infrastructure than the United States, South Korea and Taiwan. This difference has contributed to weaker foreign demand for Indian stocks during the current technology-led market cycle.
Nevertheless, the pace of India’s monthly outflows has eased from earlier peaks. Withdrawals fell to about $702 million in May, compared with $1.5 billion in April and $3.5 billion in March. The slowdown has raised questions over whether selling is nearing a peak, although the available data does not confirm a lasting return of foreign capital.
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