AI Investors Shift Focus Toward US Small-Cap Tech Stocks
The S&P 600 small-cap tech index has risen nearly 54% this year as investors seek value in chipmakers and data center suppliers. While inflows reach record levels, analysts warn that speculative trading and high bond yields could challenge the sector's long-term growth.
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United States small-cap tech stocks are surging as the Invesco S&P SmallCap Information Tech ETF recorded $49.7 million in inflows so far this year. The S&P 600 small-cap tech index rose almost 54% this year, outperforming the S&P 500 technology index's 20.1% gain. Investors are rotating capital into smaller chipmakers and data center suppliers to find overlooked AI growth beyond megacap leaders.
