The ongoing artificial intelligence frenzy that briefly made Nvidia Corp. the world’s most valuable company this week also drove record inflows into tech funds, said Bank of America Corp. strategists.

About US$8.7 billion flowed into tech funds in the week through June 19, according to a note from the bank citing EPFR Global data. 

“The ‘all roads lead to Nvidia’ trade is once again bolstered” as Europe falters amid the political turmoil in France, strategist Michael Hartnett said. 

U.S. stocks notched yet another record high this week as Nvidia hit $3.3 trillion in market capitalization, briefly overtaking Microsoft Corp. as the biggest company in the world. A range of Wall Street strategists, including at Goldman Sachs Group Inc., have boosted their year-end targets for the S&P 500 Index in recent days.

Still, while investors still feel they need more exposure to AI-related plays, “all asset allocators are concerned about the equity concentration risk,” said Hartnett.

At the same time, the rally in European stocks has faltered following the snap election call in France. European equity funds recorded a fifth straight week of outflows at $1 billion. 

Global equity funds, on the other hand, had additions of $25.6 billion, the biggest since March.