Equity Inflows Surge; Tryfacta $7.7B AI Campus Set

Investor Rotation Accelerates as Equity and Bond Flows Spike

In the week ending Feb. 18, 2026, investors redeployed capital at scale: global equity funds recorded roughly $36.33 billion of net inflows while bond funds absorbed about $19.79 billion. Driven by easing concerns around concentrated AI exposures and rising optimism for U.S. rate cuts, flows favored European and U.S. equities as well as cyclical sectors that had lagged the prior AI-led rally.

Where the money went

• European equity funds drew approximately $17.22 billion.
• U.S. equity funds reversed recent outflows with about $11.77 billion of net inflows.
• Asia received roughly $3.8 billion.
• Sectors showing notable demand included industrials (~$1.82 billion), metals & mining (~$818 million) and technology (~$696 million).
• Bond strategies continued to attract capital, including around $5 billion into short‑term bonds.

These numbers signal a meaningful shift in investor positioning: a move away from concentrated, high‑beta AI names into broader cyclicals and yield‑sensitive strategies. Rather than a wholesale rejection of AI, the flows look like a strategic rebalancing—taking profits in frothy pockets and redeploying into sectors that stand to benefit from a possible easing cycle or from higher industrial activity.

TryfactaConnex’s $7.7B Commitment: A Niche with Broad Implications

On the infrastructure front, TryfactaConnex—an affiliate of U.S. AI firm Tryfacta—announced a memorandum of understanding with the state government of Uttar Pradesh to develop a roughly $7.7 billion, 1‑gigawatt hyperscale AI data‑center campus. Announced during a high‑profile AI summit in New Delhi, the project underscores how international capital is chasing large, onshore AI compute capacity in fast‑growing markets.

Why this matters beyond the deal size

• Scale: A 1GW campus is a major electricity consumer and signals long‑term commitment to onshore compute capacity in India.
• Public‑private backing: An MOU with a state government reduces some execution friction and highlights policy support for AI infrastructure.
• Supply chain and geopolitics: Such projects lessen dependence on foreign data routes and align with broader strategic plays to localize critical digital infrastructure.

For investors focused on niche infrastructure, cloud suppliers, power utilities, and semiconductor supply chains, the TryfactaConnex plan is a bellwether. It creates potential revenue and contract opportunities across construction, power generation, cooling systems, and local software and services ecosystems.

Investment Implications and Tactical Considerations

Portfolio positioning in the near term

Given the flow dynamics, a few practical takeaways for investors:

• Rebalance exposures: Consider trimming concentrated AI-related winners where valuations appear stretched and rotating proceeds into industrials, miners, and quality cyclicals that benefit from a revival in economic activity.
• Duration management: Bond fund inflows—especially into short‑term instruments—suggest a continued appetite for liquidity and lower duration risk while investors await clearer Fed signals.
• Geographic diversification: The strong European and U.S. inflows underline the importance of regional diversification; emerging‑market allocations can be selective (e.g., infrastructure plays in India) rather than broad exposure.

Due diligence on infrastructure bets

Large data‑center projects carry execution risks that require scrutiny:

• Energy and water availability: A 1GW campus needs stable power and cooling resources—confirm long‑term supply and pricing arrangements.
• Permitting and timelines: MOUs are early‑stage commitments; investors should monitor land acquisition, environmental clearances, and grid upgrades.
• Counterparty and contractual structure: Clarity on who carries construction and operational risk, plus any government incentives, materially affects returns.

Conclusion

This week’s capital movements reflect a market recalibration: investors are easing out of narrow, high‑concentration AI bets and redeploying into diversified equities and fixed‑income sleeves while still financing long‑term AI infrastructure where strategic advantages exist. The TryfactaConnex announcement exemplifies how the AI story is evolving into large, tangible infrastructure projects—opportunities that reward patient, project‑level diligence rather than headline chasing.

Investors who combine tactical rebalancing with careful selection in infrastructure and regional plays can capture upside from both improving sentiment and structural AI investment trends.