Key Takeaways Oracle shares slid after earnings and fresh concerns over debt-funded AI data center expansion. ORCL shares fell again following a report that Blue Owl Capital will not fund a $10B data center project.Tech ETFs offer diversified exposure to AI and cloud growth despite volatility in names like ORCL. Oracle (ORCL) shares have seen consecutive declines recently, prompting investors to reassess their positions. The first pullback followed last week’s earnings release, led by concerns about the co ...

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Group 1: OpenAI and AI Demand - OpenAI has signed a multi-year contract with Broadcom to deploy 10 gigawatts of custom AI accelerators, marking its fourth major deal with chipmakers this year, indicating a strong commitment to supporting the growing AI demand [1] - The total potential capacity spending from OpenAI's mega-deals is valued at over $1 trillion, suggesting that the AI race is an industrial effort rather than a speculative trend [5] Group 2: Market Sentiment and Economic Outlook - The market sentiment regarding the AI boom is mixed, with some experts predicting an imminent "AI bubble burst," while others remain optimistic about AI's future [3][4] - Allianz's chief economist describes the current market as a boom supported by fundamentals rather than a bubble, contrasting with concerns raised by some economists [5] Group 3: Investment Strategies and Risks - Concentrating investments in a single AI stock poses risks, especially given the economic uncertainties and potential recession fears, making AI-focused Tech ETFs a strategic option for investors [8][9] - The "Magnificent Seven" tech companies dominate the AI-led growth, creating a significant gap between them and smaller firms, which could lead to vulnerabilities in the market during crises [6] Group 4: Technology ETFs Overview - iShares U.S. Technology ETF (IYW) has a year-to-date gain of 23.7%, with top holdings including NVIDIA (16.70%) and Microsoft (14.81%) [11] - Fidelity MSCI Information Technology Index ETF (FTEC) has gained 21.8% year-to-date, with top holdings including NVIDIA (16.83%) and Apple (13.42%) [12] - Roundhill Generative AI & Technology ETF (CHAT) has risen 58.3% year-to-date, focusing on companies involved in AI and related technologies [13] - Roundhill Magnificent Seven ETF (MAGS) has increased by 18% year-to-date, with significant exposure to the leading tech companies [14]

Investment Rating - The report indicates a shift in client flows with a focus on equity income, favoring value over growth, and highlights the first large-cap outflows in two months [1][9]. Core Insights - Clients sold large-cap stocks for the first time in two months, resulting in the largest outflows in over two years, while small-cap stocks saw inflows [9][24]. - Institutional clients were the biggest net sellers, while private clients were net buyers in the past 12 months [7][19]. - The report emphasizes a trend of clients favoring equity ETFs, particularly in the value category, while selling growth ETFs for the first time in five weeks [9][22]. Summary by Relevant Sections Client Flows - BofA Securities clients were net sellers of US equities for the second consecutive week, with outflows from single stocks amounting to $5.2 billion, the largest since October 2024 [9][19]. - Hedge funds, institutional, and private clients were all net sellers, marking a notable shift in client behavior [9][19]. Sector Performance - Real Estate stocks experienced the largest inflows for the fourth consecutive week, while Technology stocks saw significant outflows [9][16]. - Clients sold stocks in eight out of eleven sectors, with Technology and Communication Services leading the outflows [9][15]. Size Segmentation - Large-cap stocks faced substantial outflows, totaling $49.1 billion year-to-date, while small and micro-cap stocks recorded inflows of $4.0 billion [13][24]. - The report highlights that small-cap stocks have seen inflows in three of the past four weeks, contrasting with the trend in large-cap stocks [9][24]. ETF Trends - Clients bought Blend and Value ETFs for the fourth consecutive week, while Growth ETFs were sold for the first time in five weeks [9][22]. - The report notes that clients bought ETFs in nine out of eleven sectors, with Technology ETFs leading despite the outflows from Technology stocks [9][22].