Nvidia Beats Microsoft To Be The Biggest Of The Big: Here Are 6 ETFs Riding Its Trillion-Dollar Rebound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 05 2025
0mins
Should l Buy GOOG?
Source: Benzinga
Nvidia's Market Position: Nvidia has reclaimed its status as the world's most valuable publicly traded company with a market cap of $3.45 trillion, driven by strong demand for its chips and data center hardware, despite geopolitical challenges.
Impact on ETFs: The surge in Nvidia's stock is positively affecting various AI and semiconductor ETFs, many of which have significant allocations to Nvidia, reflecting a broader trend towards investing in AI infrastructure.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 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.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 311.330
Low
255.00
Averages
336.08
High
400.00
Current: 311.330
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
Waymo Unveils 6th Generation Autonomous Driving Technology
- Technological Breakthrough: Waymo launches its 6th generation autonomous driving technology, leveraging nearly 200 million miles of fully autonomous data to enhance performance in complex road conditions, marking an acceleration in large-scale deployment and strengthening the company's competitive edge in the autonomous driving sector.
- Enhanced Perception Capabilities: The new system utilizes advanced lidar, radar, and external audio receivers to surpass human vision and hearing, capable of extracting critical details in bright lights and shadows, thereby improving safety and reliability.
- Cost Efficiency Optimization: The 6th generation Waymo Driver employs a 17-megapixel imaging technology that reduces the number of required cameras while maintaining obstruction-free operation in adverse weather conditions like snow and rain, thus lowering operational costs.
- Production Scale Expansion: Waymo is undergoing a significant transformation at its autonomous vehicle factory in Phoenix, aiming to produce tens of thousands of autonomous vehicles annually, demonstrating the company's ambition and potential in the autonomous driving market.
See More
Alphabet's Century Bond for AI Funding Signals Major Tech Bet
- Major Investment Decision: Alphabet's (GOOG, GOOGL) choice to fund its AI capital expenditures with a $100 billion century bond represents a significant bet on a technology that is only three years old, reflecting the company's confidence in future tech advancements.
- Strong Market Response: The bond offering was oversubscribed by 10 times, indicating that despite historical challenges faced by similar century bond issuers, investor confidence in large tech firms remains robust, suggesting expectations for long-term returns.
- Historical Lessons Caution: Economic strategist Hardika Singh highlighted cautionary tales from JCPenney and General Motors, which faced bankruptcy after issuing long-term debt, warning investors to carefully assess whether Alphabet can maintain its market dominance over the next century.
- Broader Market Implications: Given the significant share of large tech companies in major indices, Singh questioned whether the market could continue to push toward all-time highs if these firms fail to sustain growth, hinting at potential market risks ahead.
See More
2026 Sees Surge in AI Infrastructure Investment
- Capital Expenditure Plans: The four major hyperscalers are set to invest approximately $650 billion in capital expenditures in 2026, with a significant portion allocated to AI infrastructure, reflecting strong confidence in future financial outcomes.
- Surge in Dell Demand: Dell Technologies reported all-time high orders for AI servers in its fiscal Q3 2026, with a backlog of $18.4 billion, indicating a rapid increase in market demand for its AI products.
- Google's Spending Details: Alphabet plans to allocate at least $175 billion in capital expenditures in 2026, with about 60% directed towards servers, creating a substantial tailwind for the entire server market, particularly benefiting companies like Dell indirectly.
- Investment Value Analysis: Dell's stock trades at less than 11 times its forward earnings, indicating a reasonable valuation; combined with stable business performance and high demand, it presents a low-risk investment opportunity, especially amid surging AI server demand.
See More
Analysis of Microsoft's Poor Stock Performance
- Investor Insight: Prominent investor Chamath Palihapitiya highlights that since late November 2022, Microsoft has had the worst stock performance among tech giants, indicating limited returns on its investment in OpenAI, which may lower market expectations and negatively impact stock price.
- Volatility Analysis: Volatility skew data shows that for the March 20 expiration, put options have significantly higher implied volatility than call options, indicating a heightened focus on downside risk, which could lead to increased demand for hedging against Microsoft stock.
- Trading Parameters: According to the Black-Scholes model, Microsoft stock is expected to trade within a range of $402 to $423 over the next 36 days with a 68% probability, suggesting a conservative market outlook where a strong catalyst is needed to drive significant price movement.
- Hedging Strategy: Investors might consider a 410/415 bull call spread, which could yield a maximum profit of 117% if Microsoft stock exceeds $415 at expiration, indicating potential profit opportunities despite the prevailing market risks.
See More
Freight Brokers Fall to AI Disruption: Which Other Stocks Remain Secure?
- Freight Brokers and AI: Freight brokers, once seen as beneficiaries of artificial intelligence, are now facing challenges from software companies leveraging AI technology.
- Shift in Perception: The shift in perception highlights the evolving landscape of the freight industry as AI continues to advance and disrupt traditional roles.
- Impact on the Industry: This change suggests that freight brokers may need to adapt to remain competitive in an increasingly automated environment.
- Future Considerations: The situation raises questions about the long-term implications of AI on various sectors within the logistics and transportation industries.
See More
Reasons Tech Stocks Might Underperform as Market Rally Expands Beyond AI
- AI Fears Impacting Stocks: Concerns about artificial intelligence are affecting tech-related stocks, indicating a shift in market sentiment.
- Sector's Future Uncertain: While the tech sector may still have potential, it appears it will need to share attention with other emerging trends.
See More
Waymo Unveils 6th Generation Autonomous Driving Technology
- Technological Breakthrough: Waymo launches its 6th generation autonomous driving technology, leveraging nearly 200 million miles of fully autonomous data to enhance performance in complex road conditions, marking an acceleration in large-scale deployment and strengthening the company's competitive edge in the autonomous driving sector.
- Enhanced Perception Capabilities: The new system utilizes advanced lidar, radar, and external audio receivers to surpass human vision and hearing, capable of extracting critical details in bright lights and shadows, thereby improving safety and reliability.
- Cost Efficiency Optimization: The 6th generation Waymo Driver employs a 17-megapixel imaging technology that reduces the number of required cameras while maintaining obstruction-free operation in adverse weather conditions like snow and rain, thus lowering operational costs.
- Production Scale Expansion: Waymo is undergoing a significant transformation at its autonomous vehicle factory in Phoenix, aiming to produce tens of thousands of autonomous vehicles annually, demonstrating the company's ambition and potential in the autonomous driving market.
See More
Alphabet's Century Bond for AI Funding Signals Major Tech Bet
- Major Investment Decision: Alphabet's (GOOG, GOOGL) choice to fund its AI capital expenditures with a $100 billion century bond represents a significant bet on a technology that is only three years old, reflecting the company's confidence in future tech advancements.
- Strong Market Response: The bond offering was oversubscribed by 10 times, indicating that despite historical challenges faced by similar century bond issuers, investor confidence in large tech firms remains robust, suggesting expectations for long-term returns.
- Historical Lessons Caution: Economic strategist Hardika Singh highlighted cautionary tales from JCPenney and General Motors, which faced bankruptcy after issuing long-term debt, warning investors to carefully assess whether Alphabet can maintain its market dominance over the next century.
- Broader Market Implications: Given the significant share of large tech companies in major indices, Singh questioned whether the market could continue to push toward all-time highs if these firms fail to sustain growth, hinting at potential market risks ahead.
See More
2026 Sees Surge in AI Infrastructure Investment
- Capital Expenditure Plans: The four major hyperscalers are set to invest approximately $650 billion in capital expenditures in 2026, with a significant portion allocated to AI infrastructure, reflecting strong confidence in future financial outcomes.
- Surge in Dell Demand: Dell Technologies reported all-time high orders for AI servers in its fiscal Q3 2026, with a backlog of $18.4 billion, indicating a rapid increase in market demand for its AI products.
- Google's Spending Details: Alphabet plans to allocate at least $175 billion in capital expenditures in 2026, with about 60% directed towards servers, creating a substantial tailwind for the entire server market, particularly benefiting companies like Dell indirectly.
- Investment Value Analysis: Dell's stock trades at less than 11 times its forward earnings, indicating a reasonable valuation; combined with stable business performance and high demand, it presents a low-risk investment opportunity, especially amid surging AI server demand.
See More
Analysis of Microsoft's Poor Stock Performance
- Investor Insight: Prominent investor Chamath Palihapitiya highlights that since late November 2022, Microsoft has had the worst stock performance among tech giants, indicating limited returns on its investment in OpenAI, which may lower market expectations and negatively impact stock price.
- Volatility Analysis: Volatility skew data shows that for the March 20 expiration, put options have significantly higher implied volatility than call options, indicating a heightened focus on downside risk, which could lead to increased demand for hedging against Microsoft stock.
- Trading Parameters: According to the Black-Scholes model, Microsoft stock is expected to trade within a range of $402 to $423 over the next 36 days with a 68% probability, suggesting a conservative market outlook where a strong catalyst is needed to drive significant price movement.
- Hedging Strategy: Investors might consider a 410/415 bull call spread, which could yield a maximum profit of 117% if Microsoft stock exceeds $415 at expiration, indicating potential profit opportunities despite the prevailing market risks.
See More
Freight Brokers Fall to AI Disruption: Which Other Stocks Remain Secure?
- Freight Brokers and AI: Freight brokers, once seen as beneficiaries of artificial intelligence, are now facing challenges from software companies leveraging AI technology.
- Shift in Perception: The shift in perception highlights the evolving landscape of the freight industry as AI continues to advance and disrupt traditional roles.
- Impact on the Industry: This change suggests that freight brokers may need to adapt to remain competitive in an increasingly automated environment.
- Future Considerations: The situation raises questions about the long-term implications of AI on various sectors within the logistics and transportation industries.
See More
Reasons Tech Stocks Might Underperform as Market Rally Expands Beyond AI
- AI Fears Impacting Stocks: Concerns about artificial intelligence are affecting tech-related stocks, indicating a shift in market sentiment.
- Sector's Future Uncertain: While the tech sector may still have potential, it appears it will need to share attention with other emerging trends.
See More
