Analysis of Invesco Equal Weight ETF Market Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy NVDA?
Source: Fool
- Underperformance: The Invesco S&P 500 Equal Weight ETF has lagged behind traditional S&P 500 index funds, raising concerns about its slightly higher expense ratio and diminishing its appeal to investors.
- Impact of Market Volatility: The performance of the Invesco ETF is negatively affected when large-cap tech stocks like Nvidia dominate the market, as the ETF's rebalancing keeps its stake in such stocks low, preventing it from capitalizing on their gains.
- Rebalancing Strategy Advantage: In volatile market conditions, the equal-weight ETF's strategy of selling short-term winners and reallocating to underperformers can yield better returns during market recoveries, enhancing the effectiveness of its investment approach.
- Diversification Value: Despite its underwhelming performance, the Invesco ETF still offers valuable diversification in a portfolio heavily weighted towards tech stocks, and it is likely to see larger gains if a tech sector pullback occurs.
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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: 235.740
Low
200.00
Averages
264.97
High
352.00
Current: 235.740
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
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- Earnings Preview: Nvidia is set to report its Q1 FY2027 earnings on May 20, forecasting a 77% year-over-year revenue increase to $78 billion, indicating strong demand in the AI market that could positively impact tech stocks.
- Market Impact: As the leader in AI chips, Nvidia's earnings report will provide investors with insights into compute demand and customer AI usage, potentially influencing the performance of the entire AI ecosystem, especially if external news is light.
- China Market Dynamics: Nvidia CEO Jensen Huang's recent visit to China to meet with President Xi Jinping regarding future sales could boost Nvidia and its peers' stock prices if progress is made, further solidifying its market position.
- Technology Interaction Outlook: Investors should pay attention to Nvidia's comments on AI's interaction with other technologies, such as quantum computing; any positive signals could drive up stocks of companies in those sectors, highlighting AI's significance in future tech development.
See More
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- Strong Earnings Outlook: Nvidia anticipates first-quarter revenue of $78 billion for fiscal 2027, representing a 77% year-over-year increase, indicating sustained strong demand in the AI chip market that could further drive stock price upward.
- Robust Profitability: The company has maintained a gross margin exceeding 70% in recent quarters, with expectations of sustaining margins above 74% as production efficiency improves, showcasing its high profitability and competitive edge in the market.
- Excellent Historical Performance: Following its last three first-quarter earnings reports, Nvidia's stock rose by 23%, 20%, and 5.2%, indicating a positive market reaction to its earnings, which may recur in the upcoming report.
- Increased Market Confidence: With progress on U.S. import tariff agreements and potential peace developments in the Middle East, investor confidence is bolstered, potentially providing additional support for Nvidia's stock price and reinforcing its leadership position in the AI sector.
See More
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- Overall Market Trends: While high-profile companies like Nvidia (NVDA) and Walmart (WMT) are also on the earnings calendar, their Quant Ratings range from 3.18 to 3.48, indicating a neutral outlook from the market, which could influence investor decision-making.
See More
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- Micron's Growth Potential: Micron Technology's (MU) stock is currently priced at $724.99, trading at a forward P/E below 8, and with the rising importance of high bandwidth memory (HBM) in AI infrastructure, strong growth is expected, especially with long-term agreements signed with major memory manufacturers.
- Amazon's Cloud Computing Edge: Amazon's (AMZN) stock is priced at $264.03, and while its P/E is 31, it remains lower than competitors like Walmart and Costco, with its AWS cloud computing segment accelerating growth, expected to drive overall revenue increases.
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See More
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- Positive Market Reaction: Following Berkshire's disclosure of its stake, the market reacted swiftly, with investors viewing it as a Buffett-style contrarian bet, despite UnitedHealth facing rising medical costs and ongoing DOJ investigations.
- New CEO's Strategic Shift: New CEO Greg Abel is reshaping the portfolio by reducing investments in healthcare insurers under regulatory scrutiny, indicating that UnitedHealth's rebound may have peaked and that downside risks are increasing.
- Strong Cash Flow Remains: Despite challenges, UnitedHealth remains the largest health insurer in the U.S., generating over $23 billion in operating cash flow over the past 12 months, underscoring its significant position and ongoing profitability in the industry.
See More
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- Financial Services Performance: Morgan Stanley (MS) provides a 2.1% yield backed by a 27.1% ROTCE for Q1 2026 and $1.75 billion in buybacks, indicating strong performance in capital management and shareholder returns.
- Risk vs. Reward: The Iran war has heightened inflation expectations, forcing investors to choose between 3% municipal bonds and 13% business development companies, reflecting market sensitivity to risk and the pursuit of yield, which impacts investment strategies.
- Yield Structure: The current yield spectrum ranges from 3% to 13%, requiring investors to weigh safety against high-risk returns, especially amid ongoing Middle East conflicts, as the demand for yield remains strong in the market.
See More
