iShares Expanded Tech-Software ETF Drops 18% Amid AI Concerns, Yet Financial Performance Remains Strong
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5h ago
0mins
Source: NASDAQ.COM
- ETF Performance Decline: The iShares Expanded Tech-Software Sector ETF has dropped 18% from its peak last fall, reflecting investor concerns about AI potentially disrupting the software industry, which has weakened market confidence in the fund.
- Sustained Financial Growth: Despite the overall decline of the ETF, revenue growth among its components remains strong, indicating that the impact of AI on their businesses is positive in the short term, potentially providing investors with a buying opportunity at lower prices.
- Software Companies Adapting to AI: Many software firms are actively integrating AI capabilities, which not only enhances their competitiveness but may also increase overall revenue per user, demonstrating the industry's resilience in adapting to new technologies.
- Investment Opportunities Emerging: For investors looking for opportunities in the software sector, the iShares ETF offers a straightforward way to invest, as real financial results may drive its recovery despite current market pessimism.
Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MSFT is 631.36 USD with a low forecast of 500.00 USD and a high forecast of 678.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
Current: 451.140
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
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.
