Tech ETF XLK Poised for Its Longest Rally Since 2020: Here's What You Need to Know
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 09 2025
0mins
Should l Buy META?
Source: NASDAQ.COM
ETF Performance: The SPDR S&P Information Technology ETF (XLK) has achieved a 10-day winning streak, gaining 3.5% last week, driven by stocks like NVIDIA and other chipmakers, rather than mega-cap tech companies like Meta and Alphabet.
Semiconductor Market Growth: The World Semiconductor Trade Statistics (WSTS) forecasts a 25% growth in the global semiconductor market for 2026, reaching $975 billion, with memory and logic sectors leading the growth.
Software Market Expansion: The global software market is projected to grow from $823.9 billion in 2025 to approximately $2.25 trillion by 2034, fueled by advancements in AI, cloud computing, and cybersecurity.
Investment Opportunities: The VanEck Semiconductor ETF (SMH) and State Street SPDR S&P Software & Services ETF (XSW) are highlighted as strong investment options, with SMH rated as a "Strong Buy" and XSW as a "Buy" according to Zacks.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 671.580
Low
655.15
Averages
824.71
High
1117
Current: 671.580
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
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.
Meta Raises Quest VR Headset Prices Amid Chip Cost Surge
- Reason for Price Increase: Meta has announced a price hike for its Quest virtual reality headsets due to a significant rise in memory chip costs, reflecting the global surge in prices of critical components that is expected to impact consumer purchasing decisions.
- Specific Price Adjustments: Effective April 19, the prices for the Meta Quest 3S (128GB) and (256GB) will increase by $50 to $349.99 and $449.99 respectively, while the Meta Quest 3 (256GB) will see a $100 increase to $599.99, with updated pricing also applying to refurbished units.
- Market Commitment: Despite the cost pressures, Meta reassured customers of its commitment to investing in virtual reality and leading the category, indicating a long-term strategic intent in technological innovation.
- Workforce Adjustments: Amid its pivot towards generative artificial intelligence, Meta recently cut 10% of its Reality Labs staff, which may impact its research capabilities and competitive position in the virtual reality market.
See More
Snap Lays Off 16% of Workforce to Cut Costs
- Layoff Announcement: Snap has announced a 16% workforce reduction, expecting to cut annualized costs by over $500 million, a move aimed at addressing profitability pressures while highlighting the challenges of operating in a highly competitive market.
- Shareholder Dilution: In 2025, Snap's stock-based compensation expenses approached $1 billion, severely diluting shareholder value and creating significant hurdles for the company in achieving sustainable profitability, despite a 10% year-over-year revenue increase to $1.72 billion in Q4.
- Profitability Challenges: While Snap reported a GAAP net income of $45 million in Q4 2025, it still posted a net loss of $460 million for the entire year, indicating the difficulties it faces in pivoting to a sustainable profitability model.
- Intensifying Competitive Pressure: With major tech companies like Meta aggressively investing in AI infrastructure, expected capital expenditures between $115 billion and $135 billion, Snap's market position is increasingly precarious, exacerbating its profitability challenges.
See More
CNBC Investing Club April Meeting Highlights
- Market Rebound Analysis: The S&P 500 index reached a record high in April, marking a significant recovery from the Iran war sell-off, indicating a renewed focus on company fundamentals despite the ongoing conflict, which underscores the importance of investor calmness.
- Nike Investment Reflection: Despite insider buying signals prompting us to increase our stake in Nike last December, we are now skeptical about CEO Elliott Hill's ability to turn the company around, and if next quarter's performance is disappointing, we will consider exiting.
- Amazon Cloud Business Recovery: Amazon's stock rebound highlights the importance of patience, as the market is gradually recognizing the strength of its AWS cloud division and online retail business, which are expected to continue growing in the future.
- Nvidia Market Leadership: Nvidia's leading position in the AI chip sector is paying off, and despite competitive pressures, its advantage in computing power positions it well to maintain market leadership going forward.
See More
AMD Shares Surge on Analyst's Bullish Outlook
- Analyst Rating Upgrade: Bernstein analyst Stacy Rasgon maintains a market perform rating on AMD while raising the price target from $235 to $265, a modest 3% increase, yet the stock surpassed this new target early Thursday, reflecting strong market confidence in AMD.
- Product Shift: Rasgon notes that AMD will sell fewer PC chips and focus on higher-margin server and data center chips under current market conditions, a strategy that is expected to enhance the company's overall profitability.
- Key Partnership Agreement: The multi-year, multi-generation deal with Meta Platforms to deploy six gigawatts of custom AMD MI450 AI chips in its data center build-out presents significant growth opportunities for AMD, further solidifying its position in the AI market.
- Optimistic Market Outlook: Despite Rasgon's cautious stance, 73% of analysts rate AMD as a buy or strong buy, with an average price target of approximately $289, indicating widespread optimism about AMD's future growth, particularly driven by sustained demand in the AI sector.
See More
Apollo CEO Defends Private Credit Amid Market Scrutiny
- Redemption Policy: Apollo Global Management has set a 5% quarterly redemption limit in its private credit fund, despite other firms relaxing their limits, aiming to maintain liquidity and bolster investor confidence, even as it faces redemption requests representing 11% of its assets.
- Market Risk Assessment: CEO Marc Rowan stated that software sector valuations are generally overstated, particularly in the context of rapid AI advancements, emphasizing the need for investors to have a clear understanding of their holdings to avoid potential risks and losses.
- Investment Scale and Returns: Last year, Apollo originated $310 billion in new investments, with 80% being investment-grade financing, serving major clients like Intel, BP, and Shell, indicating a robust investment strategy in a high-risk market.
- Role of Tech Companies in Debt Market: Rowan noted that the influence of technology companies in the debt market will continue to grow, predicting that in the next five years, major issuers of investment-grade debt will be dominated by large tech firms and banks, reflecting significant structural changes in the market.
See More
Vice President Vance Faces Setbacks in Diplomatic Missions
- Iran Negotiation Failure: Vice President Vance's 21-hour talks in Pakistan ended without a deal, as he failed to convince Iran to abandon its nuclear ambitions, highlighting the complexities and challenges facing U.S. diplomacy in the Middle East.
- Hungary Trip Loss: Despite Vance's two-day support for Prime Minister Orbán, the latter's party lost the election, which Vance deemed valuable; however, this defeat may impact his standing within the Republican Party.
- Political Future in Jeopardy: Following the failed Iran talks and Orbán's loss, Vance is seen as no longer Trump's obvious successor, although he remains a frontrunner among Republican primary voters, his support has waned, facing pressure from other candidates.
- Public Image Deterioration: Vance's overall approval rating has plummeted alongside Trump's to the lowest level for any modern vice president at this point in their term, potentially jeopardizing his political career, especially in the competition for the 2028 presidential election.
See More
Meta Raises Quest VR Headset Prices Amid Chip Cost Surge
- Reason for Price Increase: Meta has announced a price hike for its Quest virtual reality headsets due to a significant rise in memory chip costs, reflecting the global surge in prices of critical components that is expected to impact consumer purchasing decisions.
- Specific Price Adjustments: Effective April 19, the prices for the Meta Quest 3S (128GB) and (256GB) will increase by $50 to $349.99 and $449.99 respectively, while the Meta Quest 3 (256GB) will see a $100 increase to $599.99, with updated pricing also applying to refurbished units.
- Market Commitment: Despite the cost pressures, Meta reassured customers of its commitment to investing in virtual reality and leading the category, indicating a long-term strategic intent in technological innovation.
- Workforce Adjustments: Amid its pivot towards generative artificial intelligence, Meta recently cut 10% of its Reality Labs staff, which may impact its research capabilities and competitive position in the virtual reality market.
See More
Snap Lays Off 16% of Workforce to Cut Costs
- Layoff Announcement: Snap has announced a 16% workforce reduction, expecting to cut annualized costs by over $500 million, a move aimed at addressing profitability pressures while highlighting the challenges of operating in a highly competitive market.
- Shareholder Dilution: In 2025, Snap's stock-based compensation expenses approached $1 billion, severely diluting shareholder value and creating significant hurdles for the company in achieving sustainable profitability, despite a 10% year-over-year revenue increase to $1.72 billion in Q4.
- Profitability Challenges: While Snap reported a GAAP net income of $45 million in Q4 2025, it still posted a net loss of $460 million for the entire year, indicating the difficulties it faces in pivoting to a sustainable profitability model.
- Intensifying Competitive Pressure: With major tech companies like Meta aggressively investing in AI infrastructure, expected capital expenditures between $115 billion and $135 billion, Snap's market position is increasingly precarious, exacerbating its profitability challenges.
See More
CNBC Investing Club April Meeting Highlights
- Market Rebound Analysis: The S&P 500 index reached a record high in April, marking a significant recovery from the Iran war sell-off, indicating a renewed focus on company fundamentals despite the ongoing conflict, which underscores the importance of investor calmness.
- Nike Investment Reflection: Despite insider buying signals prompting us to increase our stake in Nike last December, we are now skeptical about CEO Elliott Hill's ability to turn the company around, and if next quarter's performance is disappointing, we will consider exiting.
- Amazon Cloud Business Recovery: Amazon's stock rebound highlights the importance of patience, as the market is gradually recognizing the strength of its AWS cloud division and online retail business, which are expected to continue growing in the future.
- Nvidia Market Leadership: Nvidia's leading position in the AI chip sector is paying off, and despite competitive pressures, its advantage in computing power positions it well to maintain market leadership going forward.
See More
AMD Shares Surge on Analyst's Bullish Outlook
- Analyst Rating Upgrade: Bernstein analyst Stacy Rasgon maintains a market perform rating on AMD while raising the price target from $235 to $265, a modest 3% increase, yet the stock surpassed this new target early Thursday, reflecting strong market confidence in AMD.
- Product Shift: Rasgon notes that AMD will sell fewer PC chips and focus on higher-margin server and data center chips under current market conditions, a strategy that is expected to enhance the company's overall profitability.
- Key Partnership Agreement: The multi-year, multi-generation deal with Meta Platforms to deploy six gigawatts of custom AMD MI450 AI chips in its data center build-out presents significant growth opportunities for AMD, further solidifying its position in the AI market.
- Optimistic Market Outlook: Despite Rasgon's cautious stance, 73% of analysts rate AMD as a buy or strong buy, with an average price target of approximately $289, indicating widespread optimism about AMD's future growth, particularly driven by sustained demand in the AI sector.
See More
Apollo CEO Defends Private Credit Amid Market Scrutiny
- Redemption Policy: Apollo Global Management has set a 5% quarterly redemption limit in its private credit fund, despite other firms relaxing their limits, aiming to maintain liquidity and bolster investor confidence, even as it faces redemption requests representing 11% of its assets.
- Market Risk Assessment: CEO Marc Rowan stated that software sector valuations are generally overstated, particularly in the context of rapid AI advancements, emphasizing the need for investors to have a clear understanding of their holdings to avoid potential risks and losses.
- Investment Scale and Returns: Last year, Apollo originated $310 billion in new investments, with 80% being investment-grade financing, serving major clients like Intel, BP, and Shell, indicating a robust investment strategy in a high-risk market.
- Role of Tech Companies in Debt Market: Rowan noted that the influence of technology companies in the debt market will continue to grow, predicting that in the next five years, major issuers of investment-grade debt will be dominated by large tech firms and banks, reflecting significant structural changes in the market.
See More
Vice President Vance Faces Setbacks in Diplomatic Missions
- Iran Negotiation Failure: Vice President Vance's 21-hour talks in Pakistan ended without a deal, as he failed to convince Iran to abandon its nuclear ambitions, highlighting the complexities and challenges facing U.S. diplomacy in the Middle East.
- Hungary Trip Loss: Despite Vance's two-day support for Prime Minister Orbán, the latter's party lost the election, which Vance deemed valuable; however, this defeat may impact his standing within the Republican Party.
- Political Future in Jeopardy: Following the failed Iran talks and Orbán's loss, Vance is seen as no longer Trump's obvious successor, although he remains a frontrunner among Republican primary voters, his support has waned, facing pressure from other candidates.
- Public Image Deterioration: Vance's overall approval rating has plummeted alongside Trump's to the lowest level for any modern vice president at this point in their term, potentially jeopardizing his political career, especially in the competition for the 2028 presidential election.
See More
