AI Dip-Buying in Motion: Tech Funds Swing from Record $17.8B Outflows to $8.9B Inflows in One Week

What drove the reversal

Three factors converged to flip the flow picture in a single week:

1. Dip-buying after the June selloff. In the week ending June 24, global equity fund inflows had collapsed 86% to just $7.51 billion, and technology sector funds suffered a record $17.83 billion in net outflows as concerns over debt-funded AI spending and a hawkish Fed sparked a rout. ^RR The following week, investors treated that pullback as a buying opportunity. ^R
2. Easing U.S.-Iran tensions. Renewed demand for technology stocks was supported by a de-escalation in geopolitical risk, which lifted overall risk appetite. ^RM Caution ahead of a payrolls report capped purchases, but the direction was clearly positive. ^M
3. Resilient AI earnings conviction. Fund flows data shows investors maintained confidence that tech sector earnings momentum — particularly around AI — would survive the selloff. ^R Deutsche Bank strategists noted that positioning in mega-cap growth and technology had fallen to slightly below neutral after the panic, which may have created room for buyers to re-enter. ^F

Comparison to earlier Q2 2026 peaks

The dip-buying in early July was significant but still well below the frothy peaks seen earlier in Q2:

• The early-June peak saw global equity inflows of $21.44 billion, fueled by AI euphoria and strong tech earnings. ^R
• Mid-June brought the largest tech-sector weekly inflow in years at $12.3 billion, while the broadest global equity flow figure hit a staggering $55.5 billion in net buying for the week ending June 17. ^IF But by June 24, that same trade reversed violently: U.S. stocks posted their first weekly outflow since March, tech funds bled a record $17.83 billion, and global equity inflows cratered 86% from the mid-June peak. ^RR
• The July 1 rebound ($10.44 billion global, $8.9 billion tech) represents a recovery roughly halfway back to the June peaks in tech, and only about one-fifth of the peak global equity flow. It is a textbook dip-buying pattern — investors used the panic exit to reload tech positions at lower prices — but the pace of inflows remains cautious compared to the record $21.5 billion single-week tech inflows seen just two weeks earlier. ^RRM

Bottom line: The late-June tech rout was the sharpest reversal of the AI trade in Q2 2026. The July 1 dip-buying brought flows back to moderate levels but did not match the euphoric peaks of early-to-mid June, suggesting investors remain watchful despite renewed conviction in AI earnings.