The Invesco S&P SmallCap Information Tech ETF (PSCT) has attracted $49.7 million in net inflows in 2026 as of May 27, marking a significant shift in investor focus towards small-cap US technology stocks poised to benefit from AI growth. This influx reverses a four-year trend of outflows, highlighting a growing interest in smaller tech firms amid changing market dynamics. MaxLinear (MXL), a key player in this trend, has seen its stock price soar nearly 800% over the past year, driven by demand for its high-speed optical connectivity solutions essential for AI data centers. The shift towards small-cap tech stocks is fueled by factors such as valuation compression in mega-cap AI names, expectations of lower interest rates, and the maturation of the AI spending cycle, which now extends to suppliers and niche technology providers. While the broader small-cap ETF landscape shows mixed inflows, the targeted investment in technology-focused small-caps underscores a strategic pivot. However, analysts caution that while the fundamental case for small-cap AI beneficiaries is strong, speculative elements and the durability of this rally remain concerns.