4 Mega-Cap ETFs For Today's Large-Cap Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 13 2025
0mins
Should l Buy NVDA?
Source: Benzinga
Small-Cap Stocks Struggle: Small-cap stocks are experiencing significant outflows and underperformance this year due to factors like interest rate pressures and trade tensions, while investors are shifting towards megacap stocks that benefit from strong balance sheets and growth in technology sectors.
Top Megacap ETFs: Several megacap-oriented ETFs, such as the Vanguard Mega-Cap Growth ETF (MGK) and VanEck Semiconductor ETF (SMH), have shown impressive returns, with SMH achieving a 252% annualized return over five years, highlighting the current market preference for larger companies.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia's Earnings Report to Signal Market Direction
- Market Concentration Analysis: RBC Wealth Management's Rob Sluymer highlights that the concentration of mega-cap tech stocks has significantly increased over the past few years, leading to investors being overweight in these stocks, which have now declined about 7% year-to-date.
- Nvidia Earnings Preview: Nvidia is set to report its fourth-quarter earnings on February 25, and Sluymer believes this will serve as a crucial market indicator; if the results fall short of expectations, it could trigger a larger correction in tech stocks.
- Investor Sentiment Shift: As attention on tech stocks rises, Sluymer notes that some funds are rotating out of these high-valuation stocks into other sectors, a typical behavior in times of high market concentration.
- Future Market Outlook: Should Nvidia's earnings report disappoint, it may lead to a decline in market confidence in tech stocks, potentially resulting in a broader market correction that could impact overall investment strategies.
See More
Nvidia Poised for Strong GPU Sales in China Again
- Massive Market Opportunity: Nvidia has negotiated a deal with the U.S. government to resume GPU sales to China, with CEO Jensen Huang estimating the Chinese market could generate up to $50 billion annually, significantly boosting the company's performance.
- Sales Recovery Expectations: Before the ban, Nvidia projected $8 billion in sales from China for Q2 FY 2025; if sales return to similar levels, GPU sales could exceed $30 billion, presenting substantial growth potential.
- Revenue Growth Forecast: Wall Street anticipates Nvidia's revenue will reach $326 billion for FY 2027, but given the surge in AI computing spending, actual revenue could hit $350 billion, further enhancing market confidence.
- Strong Profitability: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, it could generate $196 billion in profits, and with a reasonable 40x earnings valuation, the stock price could rise to $322, indicating a compelling investment opportunity.
See More
Nvidia Stock Fluctuations Amid AI Outlook
- Investor Concerns: Despite Nvidia's stock soaring 1,100% over the past five years, recent investor enthusiasm for AI stocks has waned due to worries about high valuations and the potential for an AI bubble, leading to downward pressure on the stock price and reflecting a cautious market outlook for future growth.
- Investment Plan Stalled: Nvidia's plan to invest up to $100 billion in AI lab OpenAI has reportedly stalled; although CEO Jensen Huang denied any issues, the news raised investor concerns, negatively impacting stock performance and highlighting the importance of OpenAI as a key client.
- Valuation Drop: Nvidia's shares recently hit their lowest valuation in nearly a year, and historical patterns indicate that significant drops in valuation often precede rapid rebounds, presenting a potential buying opportunity for investors looking to capitalize on the dip.
- Long-Term Optimism: Despite the current market environment differing from previous years, analysts predict a trillion-dollar AI market in the coming years, and Nvidia, with its leadership in the chip market and commitment to innovation, is well-positioned to benefit, making it an attractive long-term investment opportunity.
See More
Quantum Computing Inc. Faces Significant Financial Risks
- Revenue vs. Market Cap: Quantum Computing Inc. generated only approximately $546,000 in revenue over the past 12 months, while its market capitalization stands at $1.87 billion, indicating a severe disconnect that could undermine investor confidence.
- High R&D Spending: The company spends tens of millions annually on development, and while it has $555 million in cash reserves, the ongoing high expenditures could erode financial stability and impact future growth prospects.
- Equity Dilution Risk: Over the past year, the company issued more than $840 million in additional common stock to fill funding gaps, which raises concerns about significant shareholder dilution and the market's perception of its future financing capabilities.
- Management Trust Issues: The management frequently makes exaggerated claims that lack substantial backing, leading to skepticism about the sustainability of its contracts, primarily consisting of one-off research grants, which further heightens investor concerns about future performance.
See More
Advantages of Schwab U.S. Dividend ETF
- Dividend Yield Advantage: The Schwab U.S. Dividend ETF boasts a recent dividend yield of 3.8%, significantly higher than many other quality dividend-focused ETFs, indicating its strong potential for passive income and suitability for long-term investors.
- Low Expense Ratio: With an expense ratio of just 0.06%, investors only pay $0.60 annually for every $1,000 invested, greatly enhancing net returns and making it an attractive option for cost-conscious investors.
- Diversified Portfolio: The ETF allocates only 10% of its assets to tech stocks, with 20% in energy companies and 19% in consumer defensive sectors, providing a diversified investment strategy that helps mitigate risks during market fluctuations.
- Stable Historical Performance: Tracking the Dow Jones U.S. Dividend 100 Index, which includes about 100 high-quality stocks with at least 10 years of dividend payments, the ETF has shown a five-year average annual return of 10.91%, highlighting its potential for stable income and capital appreciation.
See More
Nvidia Stock Fluctuations Amid AI Outlook
- Stock Surge: Nvidia's stock has soared over 1,100% in the past five years, reflecting its leadership in the AI chip market and robust revenue growth, although recent investor concerns about an AI bubble have led to stock fluctuations.
- Investment Plan Stalled: Despite CEO Jensen Huang denying issues with the $100 billion investment plan in OpenAI, reports of potential setbacks have unsettled investors, impacting market confidence in Nvidia.
- Valuation Drop: Nvidia's stock recently hit its lowest valuation in nearly a year, and historical trends indicate that significant drops in valuation often precede rapid rebounds, suggesting that now may be an opportune buying moment.
- Long-Term Optimism: Although the market environment has changed, analysts still predict a trillion-dollar AI market in the coming years, and Nvidia is expected to benefit from this growth due to its commitment to innovation and extensive product portfolio.
See More
Nvidia's Earnings Report to Signal Market Direction
- Market Concentration Analysis: RBC Wealth Management's Rob Sluymer highlights that the concentration of mega-cap tech stocks has significantly increased over the past few years, leading to investors being overweight in these stocks, which have now declined about 7% year-to-date.
- Nvidia Earnings Preview: Nvidia is set to report its fourth-quarter earnings on February 25, and Sluymer believes this will serve as a crucial market indicator; if the results fall short of expectations, it could trigger a larger correction in tech stocks.
- Investor Sentiment Shift: As attention on tech stocks rises, Sluymer notes that some funds are rotating out of these high-valuation stocks into other sectors, a typical behavior in times of high market concentration.
- Future Market Outlook: Should Nvidia's earnings report disappoint, it may lead to a decline in market confidence in tech stocks, potentially resulting in a broader market correction that could impact overall investment strategies.
See More
Nvidia Poised for Strong GPU Sales in China Again
- Massive Market Opportunity: Nvidia has negotiated a deal with the U.S. government to resume GPU sales to China, with CEO Jensen Huang estimating the Chinese market could generate up to $50 billion annually, significantly boosting the company's performance.
- Sales Recovery Expectations: Before the ban, Nvidia projected $8 billion in sales from China for Q2 FY 2025; if sales return to similar levels, GPU sales could exceed $30 billion, presenting substantial growth potential.
- Revenue Growth Forecast: Wall Street anticipates Nvidia's revenue will reach $326 billion for FY 2027, but given the surge in AI computing spending, actual revenue could hit $350 billion, further enhancing market confidence.
- Strong Profitability: If Nvidia achieves $350 billion in revenue while maintaining a 56% profit margin, it could generate $196 billion in profits, and with a reasonable 40x earnings valuation, the stock price could rise to $322, indicating a compelling investment opportunity.
See More
Nvidia Stock Fluctuations Amid AI Outlook
- Investor Concerns: Despite Nvidia's stock soaring 1,100% over the past five years, recent investor enthusiasm for AI stocks has waned due to worries about high valuations and the potential for an AI bubble, leading to downward pressure on the stock price and reflecting a cautious market outlook for future growth.
- Investment Plan Stalled: Nvidia's plan to invest up to $100 billion in AI lab OpenAI has reportedly stalled; although CEO Jensen Huang denied any issues, the news raised investor concerns, negatively impacting stock performance and highlighting the importance of OpenAI as a key client.
- Valuation Drop: Nvidia's shares recently hit their lowest valuation in nearly a year, and historical patterns indicate that significant drops in valuation often precede rapid rebounds, presenting a potential buying opportunity for investors looking to capitalize on the dip.
- Long-Term Optimism: Despite the current market environment differing from previous years, analysts predict a trillion-dollar AI market in the coming years, and Nvidia, with its leadership in the chip market and commitment to innovation, is well-positioned to benefit, making it an attractive long-term investment opportunity.
See More
Quantum Computing Inc. Faces Significant Financial Risks
- Revenue vs. Market Cap: Quantum Computing Inc. generated only approximately $546,000 in revenue over the past 12 months, while its market capitalization stands at $1.87 billion, indicating a severe disconnect that could undermine investor confidence.
- High R&D Spending: The company spends tens of millions annually on development, and while it has $555 million in cash reserves, the ongoing high expenditures could erode financial stability and impact future growth prospects.
- Equity Dilution Risk: Over the past year, the company issued more than $840 million in additional common stock to fill funding gaps, which raises concerns about significant shareholder dilution and the market's perception of its future financing capabilities.
- Management Trust Issues: The management frequently makes exaggerated claims that lack substantial backing, leading to skepticism about the sustainability of its contracts, primarily consisting of one-off research grants, which further heightens investor concerns about future performance.
See More
Advantages of Schwab U.S. Dividend ETF
- Dividend Yield Advantage: The Schwab U.S. Dividend ETF boasts a recent dividend yield of 3.8%, significantly higher than many other quality dividend-focused ETFs, indicating its strong potential for passive income and suitability for long-term investors.
- Low Expense Ratio: With an expense ratio of just 0.06%, investors only pay $0.60 annually for every $1,000 invested, greatly enhancing net returns and making it an attractive option for cost-conscious investors.
- Diversified Portfolio: The ETF allocates only 10% of its assets to tech stocks, with 20% in energy companies and 19% in consumer defensive sectors, providing a diversified investment strategy that helps mitigate risks during market fluctuations.
- Stable Historical Performance: Tracking the Dow Jones U.S. Dividend 100 Index, which includes about 100 high-quality stocks with at least 10 years of dividend payments, the ETF has shown a five-year average annual return of 10.91%, highlighting its potential for stable income and capital appreciation.
See More
Nvidia Stock Fluctuations Amid AI Outlook
- Stock Surge: Nvidia's stock has soared over 1,100% in the past five years, reflecting its leadership in the AI chip market and robust revenue growth, although recent investor concerns about an AI bubble have led to stock fluctuations.
- Investment Plan Stalled: Despite CEO Jensen Huang denying issues with the $100 billion investment plan in OpenAI, reports of potential setbacks have unsettled investors, impacting market confidence in Nvidia.
- Valuation Drop: Nvidia's stock recently hit its lowest valuation in nearly a year, and historical trends indicate that significant drops in valuation often precede rapid rebounds, suggesting that now may be an opportune buying moment.
- Long-Term Optimism: Although the market environment has changed, analysts still predict a trillion-dollar AI market in the coming years, and Nvidia is expected to benefit from this growth due to its commitment to innovation and extensive product portfolio.
See More
